Delray bonds offer a coupon rate of 5 percent and currently sell at 96.5 percent of face value. What is the current yield on these bonds?
(a) What are the current yield on a three-year bond whose face valueis $1000 with a coupon rate of 6% per year and a price of $900?
(1) 6.00% (2)6.67% (3) 10.00% (4) 10.02% (5) 11.11 %
