Briyana has a $500 bond with a 6% coupon. Briyana purchased this bond for $460. What is the yield of this new bond?
A. 6%
B. 4.6%
C. 6.3%
D. 6.5%

Respuesta :

Answer: The yield of this new bond is 6.5%.

To find the yield, we first need to multiply the value of the bond by the coupon percent. This is the amount paid to the bond holder.

500 x 0.06 = 30

So Briyana earned $30 on a bond that cost her $460.  

30 / 460 x 100 = 6.5%

Answer:

The correct answer is:  6.5%

Step-by-step explanation: