SET 2 PRACTICE QUESTIONS Returns and Bonds Chapters 6-9

b. The current yield is defined as the annual coupon payment divided by the current. price. CY = $80/$901.40 = 8.875%. Expected capital gains yield can be found as the difference between YTM and the. current yield. CGY = YTM – CY = 9.691% – 8.875% = 0.816%. ................
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