Suppose a bond has a coupon of $40, face value of $1000, and current price of $950. What is the coupon rate? What is its current yield? Report a percentage with two decimal places
What will be an ideal response?
The coupon rate is $40/$1000 = 4.00%. The current yield is $40/$950 = 4.21%.
Economics
You might also like to view...
Wealth is
A) equivalent to saving. B) another name for income. C) the same as investment in financial capital. D) defined as the money in your savings account. E) the value of all the things that a person owns.
Economics
In 1995, the General Agreement on Tariffs and Trade (GATT) was replaced by the World Trade Organization (WTO)
Indicate whether the statement is true or false
Economics