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What is the current yield for a $1,000 corporate bond that pays 8.5 percent and has a current market value of $800? A. 10.13% B. 7.97% C. 8.60% D. 10.63% E. 8.50%

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter12: Investing In Stocks And Bonds

Section: Chapter Questions

Problem 9FPE: Which of these two bonds offers the highest current yield? Which one has the highest yield to...

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Question

General Accounting

What is the current yield for a $1,000 corporate bond that pays 8.5 percent and has a
current market value of $800?
A. 10.13%
B. 7.97%
C. 8.60%
D. 10.63%
E. 8.50%

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