What is the yield on a corporate bond with a $1000 face value purchased at a discount price of $950, if it pays 7% fixed interest for the duration of the bond? yield = [?] % Give your answer as a percent rounded to the nearest

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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What is the yield on a corporate bond with a $1000
face value purchased at a discount price of $950, if
it pays 7% 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
Enter
o03 - 2021 Acellus Corporation. All Rights Reserved.
Transcribed Image Text:What is the yield on a corporate bond with a $1000 face value purchased at a discount price of $950, if it pays 7% 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 Enter o03 - 2021 Acellus Corporation. All Rights Reserved.
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