Multiple Choice
A bond has a face value of $1,000 and an annual interest payment of $44. What is its coupon rate, and what is its yield if it is sold for $1,100 in the secondary market?
A) 4.0% and 4.4%, respectively
B) 4.4% and 4.0%, respectively
C) 4.4% and 10%, respectively
D) 44% and 4.4%, respectively
Correct Answer:
Verified
Correct Answer:
Verified
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