You purchase a $500 bond that pays 2% coupon yield ($10), and the bond is currently trading for $400. what is the current yield?

Answer :

2.5%

Step by Step Explanation:

Face value = $500

Coupon yield = 2%

Income earned on he bond each year is at the rate of 2%.

Annual coupon = $10

Current bond price = $400

Formula for current yield =

                                        = ×100

                                        =  2.5%

Hence, the current yield is 2.5%

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the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.