The current yield of the bond is 9.27%.
What is current yield?
Current yield is the bond rate of return computed as the annual coupon divided by the current price of the bond
The annual coupon is the coupon rate of 10% multiplied by the bond's par value of 100
annual coupon=10%*100
annual coupon=10
current bond price=107.87
current yield=annual coupon/current bond price
current yield=10/107.87
current yield=9.27%
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