A $1,000 face value bond has a 6.85 percent semi-annual coupon and sells for $980.00.What is the current yield?
A) 6.75 percent
B) 6.82 percent
C) 6.89 percent
D) 6.99 percent
E) 6.61 percent

Name: A $1,000 face value bond has a 6.85 percent semi-annual coupon and sells for $980.00.What is the current yield? A) 6.75 percent B) 6.82 percent C) 6.89 percent D) 6.99 percent E) 6.61 percent
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Question

Quizplus · Accepted Answer

Current yield = (.0685 × $1,000)/$980.00 = 6.99 percent

A $1,000 Face Value Bond Has a 6