MENU
What is the current yield on a $5,000 Government of Canada bond paying a 6% coupon and trading at a price of $102 (rounding to the nearest hundredth)?
Suggested Answer: D
Get Premium IFC Questions
as Interactive Web-Based Practice Test or PDF
Real Exam Format
Detailed Explanations
Instant Access
Get Your Practice Test
12 comments · newest first
CH
Christoper
2 months ago
I calculated it and got 6.12%. The coupon is high, so it fits.
CH
Chandra
2 months ago
I’m leaning towards 6.00%. Seems like a safe bet.
LA
Lauran
2 months ago
I think the yield is 5.88%. It makes sense with the bond price.
BE
Ben
2 months ago
I was thinking it might be 6.00%.
SH
Shawna
2 months ago
Wait, are we sure about that yield? Seems low.
DO
Dorothea
2 months ago
I thought it would be higher, but 5.88% makes sense.
LE
Lea
3 months ago
Totally agree, it's definitely 5.88%!
MI
Mike
3 months ago
The yield is 5.88%, right?
RO
Rosio
3 months ago
The coupon is 6% on $5,000, which is $300 annually. If it's trading at $102, I think I need to divide $300 by $5,100 to get the yield.
FR
Francine
3 months ago
I feel like I might be mixing up current yield with yield to maturity. I need to double-check the formula for current yield.
SO
Sonia
3 months ago
I remember a similar question where we had to find the yield, and I think it was something like the coupon divided by the price. So, maybe it's around 5.88%?
ST
Stefany
4 months ago
I think the current yield is calculated by dividing the coupon payment by the market price, but I'm not entirely sure how to round it correctly.