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Question
Now let's look from the view of the investor who buys an 8 percent semiannual bond with 8 years remaining to maturity, when market rates are 6%. If this investor pays $1,125.44 for the bond, what is his current yield?a) 3.55 percent
b) 7.11 percent
c) 8.00 percent
d) 10.00 percent
Answer
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