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inna [77]
4 years ago
6

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

Mathematics
1 answer:
TiliK225 [7]4 years ago
7 0
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 = F<em>i</em><em>b
</em><em>
</em>where i = bond <em />yield<em>
           </em>F = $970
           <em>ib </em>= 4.8%
i = 970*(0.048)
i = $46.56
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