If a 7oupon bond is trading for $975.00, it has a current yield of 7.18 percent.
Annual coupon = (7 / 100) * 1000 = 70
Current yield = (Annual coupon / price) * 100
Current yield = (70 / 975) * 100
Current yield = 7.18
Trading is the spontaneous exchange of goods or services between economic agents. Since transactions are consensual, it is usually assumed that the transaction is mutually beneficial. In finance, trading refers to buying and selling stocks and other assets.
Trade means to exchange goods, services, etc., to buy or sell goods, or to buy or sell stocks. An example of an exchange is giving a friend a peanut butter sandwich in exchange for a friend's tuna sandwich. An example of a transaction is when you greet a friend and are greeted.
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