Consider a $1,000 par value, 7% annual coupon bond. The bond matures in 9 years. Assuming the bond's required return is 10%, what is its current yield?

Solution Summary

The solution explains how to calculate the current yield on a bond

A bond has 16 years until maturity, a coupon rate of 5.8%, and sells for $1,109.
a. What is the currentyield on the bond? (Round your answer to 2 decimal places.)
Currentyield %
b. What is the yield to maturity? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Yield to mat

A bond has 16 years until maturity, a coupon rate of 5.8%, and sells for $1,109.
a. What is the currentyield on the bond? (Round your answer to 2 decimal places.)
Currentyield %
b. What is the yield to maturity? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Yield to mat

Apple has 8% coupon bonds on the market with 18 years to maturity. The bonds make semiannual payments and currently sell for 93% of par, or $930. Compute:
1. The CurrentYield
2. The Yield to Maturity
What is the difference between these two?

What is the yield to maturity on a Consol that pays an annual coupon of $70, and sells for $700? What is the currentyield of the console? Explain the relationship between yield to maturity and currentyield on a Consol?

Company A is selling bonds paying $105 annually that will mature 10 years from today. The bond is currently selling for $970, the face value of the bond is $1000.
Calculate:
-coupon rate
-currentyield
-yield to maturity

A bond has the following terms:
Annual interest $100
Term 15 years
Principal $1,000
a. What is the current price of the bond if comparable yields are 7 percent?
b. What are the currentyield and yield to maturity given the price of the bond in the previous question?
c. If you expect the b

Martin Software has 9.4 percent coupon bonds on the market with 19 years to maturity. The bonds make semi-annual payments and currently sell for 107.5 percent of par.
a. What is the currentyield on the bonds?
b. What is the YTM?
c. What is the effective annual yield?

A bond has a $1,000 face value and a $989 market value. The bond pays interest semi-annually, has a yield-to-maturity of 7.47 percent, and matures in 12 years. What is the currentyield?
a. 6.67 percent
b. 7.41 percent
c. 7.47 percent
d. 8.01 percent

The 7 percent coupon bonds of Firm X are selling for 102 percent of par value. The bonds mature in 6 years and pay interest semiannually.
What is the currentyield, yield to maturity and effective annual yield?
1. 6.86; 6.59; 6.70
2. 6.86; 6.23; 6.53
3. 6.37; 6.23; 6.53
4. 6.37; 6.59; 6.86
5. 6.59; 6.65;