Answer:
8.5%
Explanation:
Calculation to Determine the current yield on a corporate bond investment
First step
Amount of annual interest
=Face value × Interest rate
=$1,000 × 0.08
=$80
Now let calculate the Current yield
Current yield =Annual interest amount / Current price
=$80/ $940
=0.085, or 8.5%
Therefore the current yield on a corporate bond investment is 8.5%
