Question

Sweet Sue Foods has bonds outstanding with a coupon rate of 5.47 percent paid semiannually and sell for $1,923.74. The bonds have a par value of $2,000 and 17 years to maturity. What is the current yield for these bonds

Answer 1

Current Yield= 5.68%

Step-by-step explanation:

Current Yield = Coupon Paid/Price

= (2000*0.0547)/1923.74

= 5.68%