What was the current yield of the bonds

Reference no: EM131795640

Question: Bonds issued by Fairfax Paint have a par value of 1000 dollars, were priced at 1,101.1 dollars six months ago, and are priced at 1,041.27 today. The bonds pay semi-annual coupons and just made a coupon payment. If the bonds had a percentage return over the past 6 months (from 6 months ago to today) of -1.59 percent, then what was the current yield of the bonds 6 months ago? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.

Reference no: EM131795640

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