An Apple Incorporated bond is contracted to pay a semi-annual coupon at the rate of 8.5%. This $1,000 principal bond has a YTM of 9.24% and currently sells for $942.10. What is the annual current (coupon) yield associated with this bond? (a) 4.51% (b) 8.50% (c) 9.02% (d) 9.81% (e) 4.91%

(c) 9.02%

Explanation:

The current yield is equal to the annual interest earned divided by the current price of the bond.

Current Yield = Annual interest earned / Current price of the bond

Annual interest earned = 8.5% x $1000 = $85

Current price of the bond = $942.10

Current Yield = ( 85 / 942.10 ) x 100 = 9.02%

b. a single paragraph.

a paragraph is a series of sentences that are organized and make sense, and are all related to a single topic . almost every piece of writing you do that is longer than a few sentences should be organized into paragraphs. this is because paragraphs show a reader where the subdivisions of an essay begin and end, and thus the reader see the organization of the essay into subjects in order to be able to understand its main points.

there was no passage listed but using the process of elimination i'd say it was d. the high economy would do the opposite. i don't see how low prices would affect it. high unemployment is possible but i feel d is the better answer.