Find the Current Yield of a Bond Whose Coupon Rate

question 35

Multiple Choice

Find the current yield of a bond whose coupon rate is listed as 6.125% and currently selling at a discount of 87.50. (Round to the nearest tenth percent)

• A) 7.8%
• B) 7.0%
• C) 9.3%
• D) 10.2%

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Definitions:

Ebbinghaus

A psychologist known for his work on memory, specifically the discovery of the forgetting curve and the spacing effect.

Shereshevsky

Referring to Solomon Shereshevsky, a Russian journalist with a phenomenal memory, often studied in psychology for his extraordinary mnemonical capacities.

Ebbinghaus

Herman Ebbinghaus, a German psychologist known for his pioneering work on memory, especially the forgetting curve and the spacing effect.

Newly Learned Information

Data or knowledge that has been recently acquired or understood by an individual.