Solve the Problem. -Calculate the Current Yield for a $1000 Treasury Bond with Treasury

question 53

Multiple Choice

Solve the problem.
-Calculate the current yield for a $1000 Treasury bond with a coupon rate of 2.5% that has a market value of $750.

• A)3.67%
• B)2.50%
• C)3.00%
• D)3.33%

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Definitions:

Shortage

A situation where the demand for a product exceeds the supply of that product, often leading to a temporary unavailability.

Excess Demand

A situation where the quantity demanded of a good or service exceeds the quantity supplied at the current price.

Shortage

A situation in a market where the demand for a product exceeds the supply, resulting in a lack of enough goods to satisfy consumer demand.

Surplus

Occurs when the quantity of a good or service supplied exceeds the quantity demanded, often resulting in a decrease in price.