What is the yield to maturity on a Consol that pays an annual coupon of $70, and sells for $700? What is the current yield of the console? Explain the relationship between yield to maturity and current yield on a Consol?© BrainMass Inc. brainmass.com October 10, 2019, 5:27 am ad1c9bdddf
Current price of Consol=Po=$700
Coupon amount of Consol=C=$70
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.