Question

A bond with an annual coupon rate of 4.8% sells for $970. what is the bond’s current yield?

Answer 1

Given:

A bond with an annual coupon rate of 4.8%, bond value is $970. The bond's current yield can be calculated using this formula:

i = Fib

where i = bond yield
           F = $970
           ib = 4.8%
i = 970*(0.048)
i = $46.56