Health Foods' bonds have 7 years remaining to maturity. The bonds have a face value of $1,000 and a yield to maturity of 8 percent. They pay interest annually and have a 9 percent coupon rate. What is their current yield?© BrainMass Inc. brainmass.com March 4, 2021, 6:10 pm ad1c9bdddf
Current yield: Annual interest rate paid by a bond, expressed as a percentage ...
This solution calculates the current yield of a bond when the yield to maturity is different from the coupon rate.