Question

what is the current yield if 11.50% bond sells in the market for rs. 125?

Answer 1

Answer:

Rs.1086.95

Step-by-step explanation:

Percentage total bonds sold = 11.50 % = $\frac{11.50}{100}$

Money got = rs. 125

Total yield = ?

Now

Percentage * Total yield = Money got

so total yield = Money got / Percentage

Total yield = $\frac{125}{\frac{11.50}{100} }$

                 = $\frac{125}{11.50}*100$

                 =Rs. 1086.95

Answer 2

Answer:

9.2

Step-by-step explanation:

Current Yield= [ Percentage of bonds sold / Amount sold for ] * 100

In this case,

Current Yield =  [  11.50/125} * 100

                      =   [ 0.092 ]  * 100

                      =   9.2