The face value of a bond is $1,000 and its coupon rate is 3.80% with coupons paid semiannually. Its term to maturity is 14 years. If the yield to maturity of the bond is 6.30%, what is the current yield of the bond today? a. 4.94% b. 1.90% c. 3.80% x Od. 6.30% e. 2.47%
The face value of a bond is $1,000 and its coupon rate is 3.80% with coupons paid semiannually. Its term to maturity is 14 years. If the yield to maturity of the bond is 6.30%, what is the current yield of the bond today? a. 4.94% b. 1.90% c. 3.80% x Od. 6.30% e. 2.47%
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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
Transcribed Image Text:The face value of a bond is $1,000 and its coupon rate is
3.80% with coupons paid semiannually. Its term to maturity
is 14 years. If the yield to maturity of the bond is 6.30%,
what is the current yield of the bond today?
a. 4.94%
b. 1.90%
c. 3.80% x
d. 6.30%
e. 2.47%
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