Loading...
CFA Level 1
Fixed Income

Determining True Yield of a Fixed Income Bond

Hard Fixed Income Valuation Yield Measures

John is analyzing a bond with a face value of $500, a coupon rate of 4% paid semi-annually, and a maturity of 8 years. The bond is currently selling for $450. To better understand the investment's potential, he calculates various yield measures. Which of the following yield measures would most accurately reflect the bond's true yield considering its current market price?

Hint

Submitted2.5K
Correct1.8K
% Correct74%