If a 7.25% coupon bond is trading for $982.00,it has a current yield of ____________ percent.

Name: If a 7.25% coupon bond is trading for $982.00,it has a current yield of ____________ percent.
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The current yield is calculated as the annual coupon payment divided by the bond's current price. The annual coupon payment is 7.25% of the bond's face value (usually $1,000), which is $72.50. The current yield is $72.50 / $982.00 = 0.0738, or 7.38%.

If a 725% Coupon Bond Is Trading for $982