## Related questions with answers

Question

A new bond you are considering buying has a face value of $1,000, an interest rate of 5 percent, and a maturity date eight years away. The bond is currently selling at 104. What is the current yield? What amount of interest would you earn in that time period?

Solution

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Answered 1 year ago

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1 of 7In this exercise, we are asked what is the current yield on the bond, and what amount of interest would you earn in that time period.

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