A corporate bond pays 6% of its face value once per year. If this $10,000 10-year bond sells now for $10,450, what yield will be earned on this bond? Assume the bond will be redeemed at the end of 10 years for $10,000. ..... The yield to maturity is %. (Round to two decimal places.)

A corporate bond pays 6% of its face value once per year. If this $10,000 10-year bond sells now for $10,450, what yield will be earned on this bond? Assume the bond will be redeemed at the end of 10 years for $10,000. ..... The yield to maturity is %. (Round to two decimal places.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

A corporate bond pays 6% of its face value once per year. If this $10,000 10-year bond sells now for $10,450, what yield will be earned on this bond? Assume the
bond will be redeemed at the end of 10 years for $10,000.
The yield to maturity is
%. (Round to two decimal places.)

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