Whats the current yield of a 435 percent coupon corporate bo

What’s the current yield of a 4.35 percent coupon corporate bond quoted at a price of 101.93?

Solution

coupon = 4.35%

bond price = $101.93

current yield = annual interest / bond price

current yield = 4.35% / $101.93

   = 4.27%

therefore the current yield will be 4.27%