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    Exam 21: Stocks, Bonds, and Mutual Funds
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    Assume a Bond Sells at 97
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Assume a Bond Sells at 97

Question 103

Question 103

Short Answer

Assume a bond sells at 97.75 (pays 8% interest). The total annual interest is $80 per bond. The total dollar cost for one bond is $977.50. Calculate the bond yield to the nearest tenth percent.

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