Question: I need help solving the average current yield for a corporate bond. Below is my prompt: Based on the bonds' current YTM, calculate the average
I need help solving the average current yield for a corporate bond. Below is my prompt:
"Based on the bonds' current YTM, calculate the average current yield."
Below is the bond info I am working with:
The Amazon.com Inc.-Bond has a maturity date of 8/22/2027 and offers a coupon of 3.1500%.The payment of the coupon will take place 2.0 times per biannual on the 22.02..At the current price of 110.45 USD this equals a annual yield of 1.41%.The Amazon.com Inc.-Bond was issued on the 8/22/2017 with a volume of 3.339351 B. USD.
Is the annual yield of "1.41" listed above the current yield or expected gains for the year? Please show your work while answering, I'm lost.
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