The current yield for a bond with a par value of $1,000, an annual interest payment of $57 and a market price of $950 6%.

Name: The current yield for a bond with a par value of $1,000, an annual interest payment of $57 and a market price of $950 6%.
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Question

Quizplus · Accepted Answer

The current yield is calculated by dividing the annual interest payment by the market price of the bond. In this case, the current yield is $57/$950 = 6%.

The Current Yield for a Bond with a Par Value