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A Bond Has a Face Value of $10,000,a Price of $12,000,and

Question 30

Multiple Choice

A bond has a face value of $10,000,a price of $12,000,and coupon payments of $2000 for two years.The current yield of this bond is

A) 10%.
B) 16.7%.
C) 20%.
D) 30%.
E) none of the above

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