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:

Accumulated Earnings

The total net income retained in a company for growth, expansion, and/ or reserve purposes, not distributed as dividends.

Financial Statements

Financial statements are formal records of the financial activities and position of a business, person, or other entity, presented in a structured manner.

Sales

The total revenue generated from goods or services sold by a company within a specific period.

Capital Gains

The income gained when the selling price of assets such as stocks, bonds, or real estate surpasses their original buying price.