Loretta Scholten buys nine bonds of Leo Co. 7 1/4 16 at 103.375. The commission is $3.00 per bond. The current yield to the nearest tenth of a percent is:

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The current yield is calculated as the annual coupon payment divided by the purchase price. The annual coupon payment is 7.25% of the bond's face value (usually $1,000), which is $72.50. The purchase price per bond is 103.375% of $1,000, which is $1,033.75. The current yield is ($72.50 / $1,033.75) * 100 = 7.0%.

Loretta Scholten Buys Nine Bonds of Leo Co