A bond with a coupon rate of 7.9% maturing in 7 years at a value of $1000

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A bond with a coupon rate of 7.9% maturing in 7 years at a value of $1000 and current market pricevof $880 will have a current yeild of ( round answer to 2 decimal places)

a) 8.98%

b) 9.98%

c.) 9.48%

d) 7.98%

Related Book For answer-question

Financial Accounting

ISBN: 9781260006452

17th Edition

Authors: Jan Williams, Susan Haka

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Posted Date: Feb 13, 2024 02:38 AM

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A bond with a coupon rate of 7.9% maturing in 7 years at a value of $1000

Question:

Expert Answer:

To calculate the current yield of the bond you can use the formula Current Yield Annual Int... View the full answer

Financial Accounting

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