What is the bond current yield

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Reference no: EM131843011

1. A corporate bond ($1,000 par value) with a 9% coupon, paid semi-annually, is rated BB+. It is currently trading in the secondary market for $1,025.

The bond's current yield measures

the bond's total return potential

the growth portion of total return

the income portion of total return

2. A corporate bond ($1,000 par value) with a 9% coupon, paid semi-annually, is rated BB+. It is currently trading in the secondary market for $1,025.

What is the bond’s current yield?

9.00%

4.39%

8.78%

4.50%

Reference no: EM131843011

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