SIE practice questionmediumYield calculations
A 6% coupon bond is trading at $1,100. What is the current yield?
- A5.45%✓ Correct answer
- B6%
- C6.6%
- D5.0%
Explanation
Why A — 5.45%
Current yield = $60 coupon/$1,100 price = 5.45%. 6% is coupon rate; 6.6% and 5% are incorrect calculations.
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