Ask Question
27 August, 08:31

Group Sky Corporation has 6.5 percent coupon bonds on the market with 15 years to maturity. The bonds make semiannual payments and currently sell for 102 percent of par. What is the current yield

+2
Answers (1)
  1. 27 August, 10:30
    0
    The current yield is 6.37255%

    Explanation:

    In order to calculate the current yield we would have to make the following calculation:

    Current yield=coupon bonds percentage*100/percentage amount of sale

    According to the given data w have the following:

    coupon bonds percentage=6.5 percent coupon bonds on the market

    percentage amount of sale=currently sell for 102 percent of par

    Therefore, Current yield=6.5%*100/102

    Current yield=6.37255%

    The current yield is 6.37255%
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Group Sky Corporation has 6.5 percent coupon bonds on the market with 15 years to maturity. The bonds make semiannual payments and ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers