Question

Calculate the current yield of this bond: (Round your answer to the nearest tenth percent.)
Bond Current Yield Vol Close Net Change
Action 11 22 10 102 1.25
Current yield __________%

Answer 1

Answer:

11%

Explanation:

Note: Kindly observe the organized question is attached as picture below

FV = 1000

Coupon amount = 1000*11.22% = 112.2

Close price = 102%

Price of bond in amount = Face value * quoted%

Price of bond in amount = 1000 * 102%

Price of bond in amount = 1020

Current yield formula = Coupon amount/price of bond

Current yield formula = 112.2/1020

Current yield formula = 0.11

Current yield formula = 11%