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    Computing the Current Yield of a Publicly-Traded Bond

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    Maturity Coupon Bid Price Asked Price Asked Yield, %
    2012 May 15 1.375 101:05 101:06 0.78
    2013 May 15 3.625 106:31 107:01 1.23
    2014 May 15 4.75 111:22 111:23 1.70
    2020 May 15 8.75 144:17 144:19 3.44
    2025 Aug 15 6.875 133:07 133:11 3.94
    2030 May 15 6.25 128:25 128:27 4.12
    2040 May 15 4.375 100:28 100:29 4.32

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    What is the current yield of the 6.25% 2030 maturity bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

    What is Current yield %

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    https://brainmass.com/business/bond-valuation/computing-current-yield-publicly-traded-bond-454728

    Solution Preview

    First, we use the ask price because that is what an investor will need to pay for the bond. In this case, ...

    Solution Summary

    This solution illustrates how to compute the current yield of a publicly-traded bond.

    $2.19

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