Current Yield
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Hath Foods' bonds have 7 years remaining to maturity. The bonds have face value of $1000 and a yield to maturity of 8 percent. They pay interest annually and have a 9 percent coupon rate. What is their current yield?
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Solution Summary
The solution explains how to calculate the current yield on a bond.
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Current Yield = Interest /Price
Interest Amount = 1,000X9%=$90
From the given data we have to find out the price. The price of a bond is the present value of the ...
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