The income of a bond is a major variable in the bond valuation equation. Bond Yields are also widely quoted in business journals as tools to compare various securities on income streams and total return.
A bond currently sells for $875. It has a 7-year maturity, an annual coupon of $75, and a par value of $1000. What is its yield to Maturity? What is its current yield?© BrainMass Inc. brainmass.com October 25, 2018, 6:00 am ad1c9bdddf