What is the yield on a corporate bond with a $1000 face value purchased at a discount price of $950, if it pays 6% 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

What is the yield on a corporate bond with a $1000 face value purchased at a discount price of $950, if it pays 6% 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

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter14: Investing In Stocks And Bonds

Section: Chapter Questions

Problem 6DTM

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Question

What is the yield on a corporate bond with a $1000
face value purchased at a discount price of $950, if
it pays 6% 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

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