Assume that a $1,000 bond issued in 2012 pays $100 in interest each year.
What is the current yield on the bond if it can be purchased for
(a) $1,200? Yield on $1,200 bond is = ?%
(b) $1,000? Yield on $1,000 bond is = ?%
(c) $800? Yield on $800 bond is = ?%