Q:
A:
A
10year, 8% coupon bond is currently trading at 98.5
of par. This bond is callable in 5years at a price
of 101.5. However, it also has a putable feature which
comes into effect in 4 years at a strike price of
97.5. What is this bond's current yield measure?
a) 8.12%
b) 8.00%
c) 7.81%
d) 8.22%
The correct answer is: a)
2005 LOS: 16.1.B.b
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RELATED TERMS

Coupon Rate
The yield paid by a fixed income security. A fixed income security's ... 
Dollar Price
The percentage of par, or face value, at which a bond is quoted. ... 
Below Par
A term describing a bond whose price is below the face value ... 
Discount Bond
A bond that is issued for less than its par (or face) value, ... 
Coupon
The annual interest rate paid on a bond, expressed as a percentage ... 
Required Yield
The return a bond must offer in order to be a worthwhile investment. ...