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Allais Company's Bond Has an $85 Annual Interest Payment That

Question 85

Multiple Choice

Allais Company's bond has an $85 annual interest payment that will mature in 10 years at a value of $1,000. The bond has a current market price of $1,140. What is the nominal yield of the bond?


A) 6.5%
B) 12.4%
C) 8.5%
D) 10%

Correct Answer:

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