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The current price of a municipal bond with a coupon rate of 6.75 that is trading at par value is 1,000.

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What is the current yield of a 6.50 percent coupon corporate bond quoted at a price of 98.65?

To calculate the current yield of a bond, you divide the annual coupon payment by the bond's current market price. For a 6.50 percent coupon bond with a face value of $1,000, the annual coupon payment is $65. Given the bond is quoted at a price of 98.65 (or $986.50), the current yield is calculated as follows: Current Yield = ($65 / $986.50) × 100, which equals approximately 6.59%.


Is a bond coupon the annual interest divided by the current bond price?

No, a bond coupon refers to the annual interest payment that the bondholder receives, expressed as a percentage of the bond's face value (or par value). To find the bond's current yield, you would divide the annual coupon payment by the current market price of the bond. This provides a measure of the income return on the bond based on its current price, rather than its face value.


How is a current yield on a corporate bond calculated?

The current yield on a corporate bond is calculated by taking the bond's annual coupon payment and dividing it by the bond's current market price. The formula is: Current Yield = (Annual Coupon Payment / Current Market Price) × 100. This calculation provides an indication of the income generated by the bond relative to its market value, reflecting the yield an investor would receive if they purchased the bond at its current price.


Can you explain the purpose of market orders in trading?

Market orders are used in trading to buy or sell a security at the current market price. They are executed immediately, ensuring quick transactions but may not guarantee a specific price.


What is the difference between spot price and market price?

The spot price is the current price at which a commodity or asset can be bought or sold for immediate delivery, while the market price is the price at which a commodity or asset is currently trading in the market.

Related Questions

What is the current yield of a 6.50 percent coupon corporate bond quoted at a price of 98.65?

To calculate the current yield of a bond, you divide the annual coupon payment by the bond's current market price. For a 6.50 percent coupon bond with a face value of $1,000, the annual coupon payment is $65. Given the bond is quoted at a price of 98.65 (or $986.50), the current yield is calculated as follows: Current Yield = ($65 / $986.50) × 100, which equals approximately 6.59%.


Is a bond coupon the annual interest divided by the current bond price?

No, a bond coupon refers to the annual interest payment that the bondholder receives, expressed as a percentage of the bond's face value (or par value). To find the bond's current yield, you would divide the annual coupon payment by the current market price of the bond. This provides a measure of the income return on the bond based on its current price, rather than its face value.


McDonald's trading price?

McDonald's current trading price is between $97 and $98 in new york stock exchange and further can be check at related link.


How is a current yield on a corporate bond calculated?

The current yield on a corporate bond is calculated by taking the bond's annual coupon payment and dividing it by the bond's current market price. The formula is: Current Yield = (Annual Coupon Payment / Current Market Price) × 100. This calculation provides an indication of the income generated by the bond relative to its market value, reflecting the yield an investor would receive if they purchased the bond at its current price.


What is current price?

The term "current price" typically refers to the most recent market price at which an asset, stock, commodity, or currency is trading. This price can fluctuate frequently due to supply and demand dynamics, market sentiment, and economic factors. For the exact current price of a specific asset, it's best to refer to a financial news website or trading platform.


What is the current price of EMC stock?

The current price of EMC stock is 24.33 per share. The Stock fell 0.34 or 1.38% from the previous trading day. It is also predicted to start the trading day lower tomorrow.


What is the current trading pice for the maker of Big Mac's?

For the current trading price for the maker of the 'Big Mac', which by the way is two all beef patties, special sauce, lettuce, cheese on a sesame seed bun, you will need to lookup the current stock price for McDonalds, ('MCD') At last check it was trading at $ 75.10 per share.


If a bond's yield to maturity exceeds its coupon rate does the bond's current yield must also exceed its coupon rate?

No......The price of the bonds will be less than par or 1,000.....


Where could one find current Fisher Price coupons?

A person can find current Fisher Price coupons in several places. Some of these places include Retail Me Not, Coupon Cabin, and Living Rich With Coupons.


Can you explain the purpose of market orders in trading?

Market orders are used in trading to buy or sell a security at the current market price. They are executed immediately, ensuring quick transactions but may not guarantee a specific price.


What is the current price of Comex copper?

The current price of Comex copper is 3.1625. Webpage sites, such as CME Group, offer up-to-date prices and trading volume information on Comex copper.


What isthe current trading price for the maker of Big macs?

= McDonald's Corporation, listed on the NYSE: = Closing Price on the 21 Apr 09: $ 55.63