Assume you have a bond with a semiannual interest payment of $35, a par value of $1,000, and a current market of $780. What is the current yield of the bond?
Assume you have a bond with a semiannual interest payment of $35, a par value of $1,000, and a current market of $780. What is the current yield of the bond?
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
Section: Chapter Questions
Problem 14MC
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Current yield
![Assume you have a bond with a semiannual
interest payment of $35, a par value of $1,000,
and a current market of $780. What is the
current yield of the bond?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcbc0a3b3-82ec-4fb1-90a9-115016022dfd%2Ffec30588-aacd-47ab-8b92-27fb0059a36d%2Fksb2j0h_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Assume you have a bond with a semiannual
interest payment of $35, a par value of $1,000,
and a current market of $780. What is the
current yield of the bond?
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