Solve the problem.
-Calculate the current yield for a $100 Treasury bond with a coupon rate of 5% that has a market value of $85.

Question

Quizplus · Accepted Answer

The current yield is calculated by dividing the annual interest payment by the current market price of the bond. Here, the annual interest payment is 5% of $100, which is $5. The bond's market value is $85. So, the current yield = ($5 / $85) * 100 = 5.88%.

Solve the Problem. -Calculate the Current Yield for a $100 Treasury Bond with Treasury