Multiple Choice
The price of a bond with no expiration date is originally $1,000 and has a fixed annual interest payment of $150. If the price of the bond then falls by $100, what will be the interest rate yield to a new buyer of the bond?
A) 17.8 percent
B) 16.7 percent
C) 15 percent
D) 11.2 percent
Correct Answer:
Verified
Correct Answer:
Verified
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