What is the running yield on a 6% coupon bond selling at a clean price of $96?

What is the running yield on a 6% coupon bond selling at a clean price of $96?
A . 5.70%
B . 6.25%
C . 6.30%
D . 6.00%

View Answer

Answer: B

Explanation:

The ‘running yield’ refers to the coupon rate divided by the current price. In this case, it is 6/96 = 6.25%. Remember that the running yield is also called the current yield.