Calculating the nominal yield of the bond
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A bond with a $114 annual coupon, maturing in 10 years at a value of $1000 has a current market price of $920. What is the nominal yield of the bond?
A)9.5%
B)12.4%
C)11.4%
D)none of the above
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Since the bond is selling at discount (below par value) the yield will be more than ...
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