Asked by raquel galvan on May 09, 2024
Verified
An investor bought an 8% bond at 92. Compute the current yield. (Round answer to two decimal places.)
Current Yield
The annual income (interest or dividends) divided by the current price of the security, expressed as a percentage.
8% Bond
A bond that pays an annual interest rate of 8% on its face value, typically issued by corporations or governments as a form of debt financing.
- Absorb the concept of current yield and how one can compare it among different bonds.
Verified Answer
AP
Learning Objectives
- Absorb the concept of current yield and how one can compare it among different bonds.