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12 February, 20:06

Sweet Sue Foods has bonds outstanding with a coupon rate of 5.47 percent paid semiannually and sell for $1,923.74. The bonds have a par value of $2,000 and 17 years to maturity. What is the current yield for these bonds

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  1. 12 February, 23:04
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    Current Yield = 5.68%

    Explanation:

    Current Yield = Coupon Paid/Price

    = (2000*0.0547) / 1923.74

    = 5.68%
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