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kakasveta [241]
2 years ago
13

What is the current yield on a 3 year bond with 10% annual coupons, a par value of 100, and a current price of 107.87?

Mathematics
1 answer:
hichkok12 [17]2 years ago
5 0

The current yield of the bond is 9.27%.

What is current yield?

Current yield is the bond rate of return computed as the annual coupon divided by the current price of the bond

The annual coupon is the coupon rate of 10% multiplied by the bond's par value of 100

annual coupon=10%*100

annual coupon=10

current bond price=107.87

current yield=annual coupon/current bond price

current yield=10/107.87

current yield=9.27%

Find more on current yield on:brainly.com/question/12909555

#SPJ1

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