A bond has a par value of $1,000, a market price of $300, and a 9% coupon rate. It will mature in 5 years. What is the current y

Question

1 year ago

9

ield of the bond?.

1 answer:

ivanzaharov [21] · Answer 1 · 2024-05-09T03:05:11+03:00

The current yield of the bond is 30%.

A bond is a sort of financial security in which the issuer owes the bearer a debt and is obligated to repay the principle of the bond as well as interest over a specified period of time, depending on the terms.
Interest is normally paid at regular intervals.

To calculate the current yield of the bond:

Therefore, the current yield of the bond is 30%.

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