Reading 14 example 10 - Credit Curve Strategies

I was trying to calculate the rolling down return.

They calculated the current yield as the coupon/ initial bond price, but don’t we calculate the current yield using the current bond price as of now?

What do you mean by “now”?

lets say 6 months passed since we bought the bond , so we have a price because of the rolling yield curve

If you put $100 in the bank, wait one year, and withdraw $102, do you compute the return as \dfrac{\$2}{\$100} = 2.00\%, or as \dfrac{\$2}{\$102} = 1.96\%?

the first one

There’s your answer.

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thank you

You’re welcome.