What is the yield on a corporate bond with a $1000 face value purchased at a discount price of $925, if it pays 8% fixed interest for the duration of the bond?. yield = [ ?] % Give your answer as a percent rounded to the nearest hundredth. Hint: yield = interest paid price paid %3D Enter

What is the yield on a corporate bond with a $1000 face value purchased at a discount price of $925, if it pays 8% fixed interest for the duration of the bond?. yield = [ ?] % Give your answer as a percent rounded to the nearest hundredth. Hint: yield = interest paid price paid %3D Enter

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Bonds
What is the yield on a corporate bond with a $1000
face value purchased at a discount price of $925, if
it pays 8% fixed interest for the duration of the
bond?.
yield = [ ? ] %
Give your answer as a percent rounded to the nearest
hundredth.
Hint: vield= interest paid
price paid
Enter
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