A Treasury bond is quoted at a price of 106: 23 with a 3.50 percent coupon.The bond pays interest semiannually.What is the current yield on one of these bonds?

Name: A Treasury bond is quoted at a price of 106: 23 with a 3.50 percent coupon.The bond pays interest semiannually.What is the current yield on one of these bonds?
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Current price = 106 and 23/32nds percent of face = 1.0671875 × $1,000 = $1,067.1875Current yield = (0.035 × $1,000)/$1,067.1875 = 3.28 percent

A Treasury Bond Is Quoted at a Price of 106