Question: Type your question here You bought a six-year bond issued by Runaway Corp. four years ago. At that time, you paid $974.33 for the bond.

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You bought a six-year bond issued by Runaway Corp. four years ago. At that time, you paid $974.33 for the bond. Th e bond pays a coupon rate of 7.375 percent, and coupon payments are made semiannually. Currently, the bond is priced at $1,023.56. What yield can you expect to earn on this bond if you sell it today?

This is the answer, I'm trying to figure out how you come to this answer.

8.65% (EAY _ 8.84%)

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