Financial Markets

Multiple Choice

The current yield on a coupon bond with 6,000 Face Value, a coupon rate equal to 0.08 (8%) and a current purchase price of 9,600 is 

  • 8%. 
  • 20%. 
  • 10%. 
  • 5%. 
  • none of the above. 
 Current Yield: 
 
CY = C (annual cash inflows -> FV * Coupon rate %) / P (market price)

Diskussion