21 April, 02:12
John buys a $1,000 bond that pays 6% annual interest at 75. what is john's annual yield?
21 April, 02:39
To calculate the current yield of bonds.
We have the given par value of $1000, a market price of $750 and an interest rate of 6%.
Formula of current yield:
Yield = (interest rate * par value) / (market price) * 100%
= ((0.06 * $1000) / $750) * 100%
= ($60/$750) * 100%
=0.08 * 100%
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» John buys a $1,000 bond that pays 6% annual interest at 75. what is john's annual yield?