Assume that a $2,000-bond issued in 2020 pays $180 in interest each year. What is the current yield on the bond if it can be purchased for $1,800?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 9P
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Assume that a $2,000-bond issued in 2020
pays $180 in interest each year. What is the
current yield on the bond if it can be
purchased for $1,800?
Transcribed Image Text:Assume that a $2,000-bond issued in 2020 pays $180 in interest each year. What is the current yield on the bond if it can be purchased for $1,800?
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