Loading…
SIDC PrepStudyingModule 6
Switch exam
Investment advice and corporate finance
Module 12Investment Management and Corporate FinanceA bond with a 5% annual coupon on a RM100 face value trades at RM96.00. What is its current yield?
Current yield = annual coupon ÷ market price = 5 ÷ 96 = 5.21%. 5.00% is the coupon rate (coupon ÷ face value). 4.80% multiplies the coupon rate by the price ratio (5% × 0.96). 5.10% divides the coupon by the average of price and face value (5 ÷ 98), a step from the approximate YTM formula. Current yield ignores the capital gain to maturity, which yield to maturity includes. Source: SIDC Module 12 Study Outline (Jul-Dec 2026) Section 5 Topic 9 Debt Financing; F. J. Fabozzi, Bond Markets, Analysis and Strategies (as at October 2026).
Confusing current yield with the coupon rate or with yield to maturity.
Practise more Module 12 Debt financing questions
Exam-style questions with worked answers, then full timed mocks. Free to start.
Build a daily practice habit — a few exam-style questions a day, with worked answers. Free to start.
Start practising →Original study material mapped to the public SIDC Module 12 syllabus. Unofficial, not endorsed by SIDC or the SC. Verify figures and rules against current guidance before relying on them.