Suppose that a $1,000 bond when newly issued paid a fixed $40 per year and interest. Suppose further, that after several years, the market price of that bond his fallen to $900. What is that bond’s current yield percentage? ________

20. A $1,000 bond that is trading at 86% of par is selling for a price = _______

22. given a federal tax rate = 30%, and a state-tax rate = 7% then for a $1,000 Treasure bond paying 3.5% interest per year, what is the tax-equivalent yield? _______

25. For _________ investors, As long as a company’s earnings are growing rapidly, they will willing pay, what some will consider, a high price per share for the stock.

Answer rating: 100% (QA)

To calculate the current yield of a bond you divide the annual interest payment by the market price ... View the full answer