Respuesta :
The current yield will be 126.8/995 = 12.74%
What is the Current yield?
The annual return on an investment (interest or dividends) is calculated by dividing it by the security's current market value. Instead, then focusing on a bond's face value, this metric looks at its current price.
The return an investor would anticipate making if they bought and held the bond for a year is represented by the current yield.
The return an investor earns if he retains a bond to maturity, however, is not represented by the current yield.
Bond investments, which are securities that are issued to an investor at a par value of $1,000, are the assets to which current yield is most frequently applied.
Bonds are traded between investors, and each bond has a coupon amount of interest that is printed on the bond certificate.
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