Ask Question
22 April, 12:09

Genova Corporation has a four year 10% annual coupon bond. The price of the bond is $956.12. The Yield to Maturity is 11.43%. What is the current yield on this bond

+2
Answers (1)
  1. 22 April, 12:21
    0
    10.46%

    Explanation:

    Data provided in the question

    NPER = 4 years

    Price of the bond is $956.12

    Yield to maturity is 11.43%

    Coupon rate = 10%

    We assume the face value be $1,000

    So the coupon payment is

    = Face value * Coupon rate

    = $1,000 * 10%

    = $100

    Now the current yield on this bond is

    = Coupon payment : Price of the bond

    = $100 : $956.12

    = 10.46%
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Genova Corporation has a four year 10% annual coupon bond. The price of the bond is $956.12. The Yield to Maturity is 11.43%. What is the ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers