What is the current yield of the 4.375% 2040 maturity bond?

Refer the table below:

Maturity	Coupon	Bid Price	Asked Price	Asked Yield, %
2012 May 15	1.375	101:05	101:06	0.78
2013 May 15	3.625	106:31	107:01	1.23
2014 May 15	4.75	111:22	111:23	1.70
2020 May 15	8.75	144:17	144:19	3.44
2025 Aug 15	6.875	133:07	133:11	3.94
2030 May 15	6.25	128:25	128:27	4.12
2040 May 15	4.375	100:28	100:29	4.32

What is the current yield of the 4.375% 2040 maturity bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Current yield

4.36  %

Explanation:

The bond pays a coupon of 4.375%, which means annual interest is $43.75. The bond is selling for 100 29/32 = $1,009.0625. Therefore, the current yield is $43.75/$1,009.0625 = 4.34%.