📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

  • google app store apple app store

    • Question

      What will be the current yield of a bond with a face

      value of ₹100, a coupon interest rate of 10% and market price of ₹80?
      A 10% Correct Answer Incorrect Answer
      B 12% Correct Answer Incorrect Answer
      C 12.5% Correct Answer Incorrect Answer
      D 13.5% Correct Answer Incorrect Answer
      E 15% Correct Answer Incorrect Answer

      Solution

      The current yield of a bond is calculated by dividing the annual interest payment by the current market price of the bond. (Interest Payment / Current Market Price) * 100 (10 / 80) * 100 = 12.5 %

      Practice Next
      More Bonds and Bond Market Questions
      ask-question