Question

Lacy has a $1000 bond with a 6.2% coupon that she purchased for $1025. What is the yield of this bond? Round your answer to 2 decimal places.

Answer 1

So the question is asking what is 6.2% of 1000? Then rounding our decimals? 

Answer 2

6.04%

Explanation:

multiply the coupon rate with the face value, and divide with the purchase price