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what is the current yield of the bond?

what is the current yield of the bond?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Q21

You purchased a coupon-bearing bond at $1200 and resold it at $1000 after exactly one year. If the coupon is $60 paid annually, what is the current yield of the bond? O A. -0.117 O B. 0.050 O C. -0.167 O D. 0.060
Transcribed Image Text:You purchased a coupon-bearing bond at $1200 and resold it at $1000 after exactly one year. If the coupon is $60 paid annually, what is the current yield of the bond? O A. -0.117 O B. 0.050 O C. -0.167 O D. 0.060
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