What is the current yield of a four-year semi-annual pay bond with a par value of $1,000 and a 4% coupon rate when the bond is currently priced at $932.35?

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The current yield of a bond is calculated by dividing the annual interest payment by the current market price of the bond. For a bond with a 4% coupon rate and a par value of $1,000, the annual interest payment is $40 (4% of $1,000). If the bond is currently priced at $932.35, the current yield is ($40 / $932.35) * 100 = 4.29%.

What Is the Current Yield of a Four-Year Semi-Annual Pay