A bond is currently trading at par, has an annual coupon of $100, and matures at a face value of $100.Therefore, the _________ is 10 percent.

Question

Quizplus · Accepted Answer

When a bond is trading at par, its coupon rate, current yield, and yield to maturity are all equal. Since the bond has a $100 annual coupon and a $100 face value, the coupon rate is 10%. The bond is trading at par, so the current yield and yield to maturity are also 10%.

A Bond Is Currently Trading at Par, Has an Annual