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mote1985 [20]
3 years ago
11

Monica has a $1000 bond with a 5.5% coupon. Monica purchased this bond for $1025. What is the yield of this new bond?

Mathematics
2 answers:
sashaice [31]3 years ago
8 0

Answer: the answer is 5.4% APEX

arsen [322]3 years ago
6 0

Answer:

Annual return on the bond is 1000*0.055 = $55 per year  

Yield = return/price = 55/1025 ≈ 0.0537 ≈ 5.4%


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