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24 May, 14:39

Bourdon Software has 6.4 percent coupon bonds on the market with 18 years to maturity. The bonds make semiannual payments and currently sell for 106.8 percent of par.

What is the current yield on the bonds? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e. g., 32.16.)

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  1. 24 May, 15:59
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    The current yield on the bonds is 5.99%

    Explanation:

    Current yield = Annual coupon payment / Price Current yield

    = $64 / $1,068

    Current yield = 0.0599, or 5.99%
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