Question

Consider a $1,000 par value bond with a 7 percent annual coupon. The bond pays interest annually. There are 9 years remaining until maturity. What is the current yield on the bond assuming that the required return on the bond is 10 percent?

Answer 1

Answer:

A $1,000 par value bond with a 7 percent annual coupon. The bond pays interest annually. There are 9 years

return on the bond is 10 percent