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Book publications has $1,000 face value bonds currently sell for $774. They have a 4.5% coupon rate. What is the current yield on these bonds?

Book publications has $1,000 face value bonds currently sell for $774. They have a 4.5% coupon rate. What is the current yield on these bonds?


a. 4.58%

b. 5.00%

c. 5.18%

d. 8.70%

e. 5.81%

Top Answer

The current yield... View the full answer

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Current yield = Annual coupons... View the full answer

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