Current yield is defined as coupon/price, I use Price = $/$ of face =1.07, Current yield as .041
In our example =Coupon/1.07=04.1 and so the coupon is .04387. The interest is $4.387 per $100 of face.
For a $500 bond the interest would by $21.935.
Nana Y.
asked • 08/01/19A $500 Treasury bond with a current yield of 4.1 % that is quoted at 107 points. The annual interest is.......?
What is the annual interest?
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