Engineering Economy (17th Edition)
17th Edition
ISBN: 9780134870069
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
Textbook Question
100%
Chapter 5, Problem 10P

A corporate bond pays 5% of its face value once per year. If this \$5,000 10-year bond sells now for \$5,500, what yield will be earned on this bond? Assume the bond will be redeemed at the end of 10 years for \$5,000. (5.3.2)

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