What Is the Current Yield for a $1,000 Corporate Bond

question 115

Multiple Choice

What is the current yield for a $1,000 corporate bond that pays 7 percent and has a current market value of $975?

• A)7 percent
• B)7.18 percent
• C)8.33 percent
• D)9 percent
• E)10 percent

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Definitions:

Material Differences

Significant disparities or variances in data, information, or financial figures that could influence decisions.

Voluminous Paperwork

Refers to an overwhelming amount of paperwork or documents that are often complex and extensive.

Fixed Budget

A budget that sets forth expected revenue, expenses, and profit for a company over a specific period, based on the assumption of a fixed level of activity.

Flexible Budget

A financial plan that shifts in response to alterations in activity or volume.