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27 April, 14:24

Chester has a par value $500 bond issued by Harris County. The bond pays 6.2% yearly interest, and has a current market rate of 98.626. If Harris County bonds had a market rate of 102.760 when Chester bought it, what is the current yield on Chesters bond?

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  1. 27 April, 14:40
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    Current yield = annual interest payment / current bond price

    = 6.2% / 98.626

    = 0.063%
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