Current Yield - What does it tell us?
Jerling Company’s 15-year, 9% semi-annual coupon bond is selling for $940. What is the bond’s current yield?
Answer is 9.57%
What does that represent. I know how to calculate it but what does that 9.57% mean? I get confused between all these rates/yield. YTM, BEY, Effective Yield. Current Yield wtf, how many ways can you value something.
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