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3I0-013 · Question #267

A 7% bond, maturing in 10 years, is selling at 92.00. What is its current yield?

The correct answer is D. The yield cannot be determined. See the full explanation below for the reasoning.

Question

A 7% bond, maturing in 10 years, is selling at 92.00. What is its current yield?

Options

  • A7.61%
  • B6.40%
  • C7%
  • DThe yield cannot be determined

How the community answered

(28 responses)
  • A
    14% (4)
  • B
    4% (1)
  • C
    7% (2)
  • D
    75% (21)

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