Explore BrainMass

Explore BrainMass

    Current Yield

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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 June 3, 2020, 5:37 pm ad1c9bdddf
    https://brainmass.com/business/bond-valuation/33060

    Solution Preview

    Current yield: Annual interest rate paid by a bond, expressed as a percentage ...

    Solution Summary

    This solution calculates the current yield of a bond when the yield to maturity is different from the coupon rate.

    $2.19

    ADVERTISEMENT