Hey,
This question is from the vault PE guide. I can't really understand the answer here? Current yield I was taught I the annual coupon divided by the price, so 8/80=10%. If by current yield they mean YTM, I usually use this as an approximation when no access to excel or calculator:
https://financeformulas.net/Yield_to_Maturity.html
But that gives roughly 13%? What are they doing with the compounding figure here?
| +157 | UBS Tech layoff | 52 | 21h |
| +147 | Analyst: Why is UBS IB doing worse than peers?, UBS CFO: No Comment | 23 | 1h |
| +145 | UBS’s M&A BANKERS ARE DOING TERRIBLY. $200M EXTRA IS BEING CUT | 31 | 37m |
| +60 | Are target prospects getting dumber? | 26 | 3h |
| +58 | How do YOU manage networking requests? | 17 | 5h |
| +46 | Leaked Interview Questions to Recruiting Services | 26 | 22m |
| +37 | What Differentiates the Best Analysts as AI Improves? | 9 | 4d |
| +36 | Quitting After First 4 months | 12 | 1d |
| +34 | MBB Pay Raises | 26 | 1d |
| +33 | Cornell Club T10 Rankings (UPDATED 10/2026) | 19 | 1d |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
Beatae aliquam cum nihil excepturi suscipit et esse. Consequatur omnis illum nihil fugiat. Quasi neque velit recusandae iste et ex.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...