
Current Yield and Yield to Maturity of a bond
yield to maturity is more than the coupon rate, the bond sells for less than the par value ( $1000) and the current yield is more than the coupon rate Calculates Current Yield and Yield to Maturity of a bond and compares them.

Calculating the current yield in given case of a Consol
YTM=current yield=10% Solution calculates the current yield in the given case of a Consol. It also explains the relationship between YTM and current yield on a Consol.

Bond value, yield to maturity, coupon rate, current yield
None of the answers above
For a premium bond (Price> Par): Coupon rate > Current yield> Yield to Maturity
For a par value bond (Price= Par): Coupon rate = Current yield = Yield to Maturity
For a discount bond (Price< Par): Coupon rate <Current yield

Coupon Rates, Coupon Yields and Maturity
A bond with a face value of $1000, the current yield on a 10% bond priced at $900 is calculated as:
current yield = (annual dollar interest paid) / current market price X 100%
current yield (1000 x 10%) / 900 = (.1111 X 100%)
or
current yield

Current Yield and Yield to Maturity for a bond
454668 What is the current yield and the yield to maturity for a bond? A bond has 16 years until maturity, a coupon rate of 5.8%, and sells for $1,109.
a. What is the current yield on the bond? (Round your answer to 2 decimal places.)

Current & Effective Yield of a Bond
190734 Current & Effective Yield of a Bond What is the current and effective annual yield for the following?

Bond Yields Current Yield and Yield to Maturity
Current yield = Annual Coupon payment/ Current Price=
Annual Coupon payment= 80 =8.%*1000
Current price= 1100
Current yield = 7.27% =80/0.0727
Answer: Current yield = 7.27%
b) What is the yield to maturity?

Constant growth valuation formula for stocks
Rust Petroleum's dividend yield and capital gains yield both equal 6%.
Schubert Fabric's current stock price is $15 per share, its required return is 13%, and its dividend yield is 8%.

Computing the Current Yield of a PubliclyTraded Bond
Current yield = (Par value*coupon rate)/(Par value*Market Bid Price)
Current yield = ($1,000*.0625)/($1,000*((128+(27/32))/100)
Current yield = $62.50/($1,000*(128.84375/100)
Current yield = $62.50/$1288.4375
Current yield =4.85% This solution illustrates

Current yield/yield to maturity
The Yield to Maturity
What is the difference between these two? 1. Current yield = Annual Interest/Price
Annual interest = 1,000 X 8% = 80
Price = 930
Current yield = 80/930 = 8.60%
2.