If a 30-year bond with a quoted price of $810, pays $40 interest semiannually, its current yield would be about:

Name: If a 30-year bond with a quoted price of $810, pays $40 interest semiannually, its current yield would be about:
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The current yield is calculated as the annual interest payment divided by the bond's current price. The bond pays $40 semiannually, so the annual interest is $80. The current yield is $80 / $810 = 0.0988, or approximately 9.9%.

If a 30-Year Bond with a Quoted Price of $810