What is the yield on a corporate bond with a $1000 Face value purchased at a discount Price of $850, if it pays 7% fixed interest for the duration of the bond?
What is the yield on a corporate bond with a $1000 Face value purchased at a discount Price of $850, if it pays 7% fixed interest for the duration of the bond?
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
Section: Chapter Questions
Problem 1PS
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Question
What is the yield on a corporate bond with a $1000 Face value purchased at a discount Price of $850, if it pays 7% fixed interest for the duration of the bond?
![2:00
A
Acellus
Bonds
What is the yield on a corporate bond with a $1000
face value purchased at a discount price of $850, 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
Copyright © 2003 - 2022 International Academy
of Science. All Rights Reserved.
4
1
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Transcribed Image Text:2:00
A
Acellus
Bonds
What is the yield on a corporate bond with a $1000
face value purchased at a discount price of $850, 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
Copyright © 2003 - 2022 International Academy
of Science. All Rights Reserved.
4
1
Help Resources
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