Answer:
6.37%
Explanation:
Annual yield is the annual dividend yield of a bond.
Formula for annual yield = Annual dividend amount / Current price of the bond
Annual dividend amount = Annual interest rate * Face value
= 6% * $5,000
= $300
Current price = 94.125 means that the bond price is 94.125% of the Face value
Current price = 0.94125* 5000 = $4,706.25
Therefore, annual yield = 300/4,706.25 = 0.0637 or 6.37%
