Question: Determine the average annual yield on a bond whose current price is $800, par value is $1,000, coupon rate is 15 percent and whose term

Determine the average annual yield on a bond whose current price is $800, par value is $1,000, coupon rate is 15 percent and whose term to maturity is 5 years. Your answer is (to the nearest percent):

35 percent

22 percent

16 percent

12 percent

9 percent

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