A coupon bond that pays interest of $60 annually has a par value of $1,000, matures...

A coupon bond that pays interest of $60 annually has a par value of $1,000, matures in 5 years, and is selling today at a $75.25 premium from par value. The current yield on this bond is _________.

Expert Solution

Current Yield = Annual Coupon/Price

Current Yield = 60/(1,075.25)

Current Yield = 5.58%

jeff jeffy answered 2 years ago

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