Answer:
4.85%
Explanation:
An investor makes a payment of $989.40 for a bond
The bond has a coupon rate of 4.8%
Therefore, the current yield on the bond can be calculated as follows
= 4.8×10/989.40
= 48/989.40
= 0.0485×100
= 4.85%
Hence the current yield on the bond is 4.85%
