Respuesta :
Answer:
To make this clear, consider this simple example: a $1,000 bond that sells for $900 and pays a 7% coupon (that's $70 a year), would have a current yield of 7.77%. This is $70 (annual interest) divided by $900 (current price).
Step-by-step explanation:
The yield on the corporate bond of a face value of $1000 is 7.77%.
What is the percentage discount?
The percentage discount is the discount given on a product as compared to the given discount on 100 rupees.
Given, the face value of the bond is $1000.
Discounted price of the bond is $900.
Therefore, the fixed interest on the bond for that period will be
= $1000 × 7/100 = $70.
Now, the yield on that corporate bond = 70 × 100/900 % = 7.77% .
Learn more about percentage discount here: https://brainly.com/question/27194137
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