Multiple Choice
Assume that an investor pays $900 for a bond with a face value of $1,000. If the bond pays 10 percent interest annually, the current yield is equal to
A) 9.5 percent.
B) 9.1 percent.
C) 10.0 percent.
D) 11.1 percent.
Correct Answer:
Verified
Correct Answer:
Verified
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