n NISM Certifications
NSM General NISM
Medium

A bond with a face value of ₹100 is priced at ₹105 and has a 9% coupon rate. What is the current yield?

Practice question from NISM Series IV - Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    9%

  2. 8.57%

    Correct answer

  3. C

    9.33%

  4. D

    5%

Why this is the answer

Current Yield = (Coupon / Price) × 100 = (9 / 105) × 100 = 8.57%

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