SIE practice questioneasyYield Calculations - Current Yield
A 6% coupon bond with a current market price of $900 has a current yield of:
- A6.00%
- B6.67%✓ Correct answer
- C7.50%
- D5.40%
Explanation
Why B — 6.67%
Current yield = Annual interest / Market price = $60 / $900 = 6.67%. The other choices result from different price/interest assumptions.
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