Assignment:
Current yield : Consider a $1,000 par value, 7% annual coupon bond. The bond matures in 9 years. Assuming the bond's required return is 10%, what is its current yield? (Hint: You need to figure out the price of this bond first and then its current yield.)
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A. 8.52% |
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B. 10.00% |
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C. 8.46% |
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D. 7.00% |
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E. 8.37%
Please show how you got the answer.
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