Respuesta :
The current yield of PDQ stock is 2.0%.
What is the current yield?
- The annual return on an investment (interest or dividends) is calculated by dividing it by the security's current yield value. Instead of focusing on a bond's face value, this measure looks at its current price.
- Example: Particularly for short-term investments, this is advantageous. For instance, if a buyer pays $900 for a $1,000 par value bond with a 6% coupon rate, they will receive an annual interest income of $60 ($1,000 X 6%). The yield at the moment is ($60) / ($900), or 6.67%.
- The annual interest rate set when the bond is issued that does not fluctuate those of the bond's life is known as the coupon yield, sometimes known as the coupon rate. Bonds' current yield is calculated by dividing their coupon yield by their current market value.
- To determine the current yield of a bond investment, divide the bond's annual interest by the market value of the bond.
To find the current yield of PDQ stock:
Pdq Company's $10 par common stock is currently trading at $40.
Common dividend=$.20
Therefore, The current yield of PDQ stock is 2.0%.
To learn more about the current yield, refer to:
https://brainly.com/question/20164529
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