A corporate bond is quoted at a price of 103.16 and carries a 6.50 percent coupon. The bond pays interest semiannually. What is the current yield on one of these bonds?

A. 6.24 percent
B. 6.30 percent
C. 6.36 percent
D. 6.62 percent
E. 6.66 percent

Answer: B. 6.30 percent

Business

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