Suppose you purchased a corporate bond for its par value of $1,000 when it was issued. The bond pays a 10% coupon ($100) annually. After two years, you sell the bond to another investor for $950. How will the change in the bond's market value affect the new owner's yield on the bond?

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The Answer of Suppose you purchased a corporate bond for its par value of $1,000 when it was issued. The bond pays a 10% coupon ($100) annually. After two years, you sell the bond to another investor for $950. How will the change in the bond's market value affect the new owner's yield on the bond?

Suppose You Purchased a Corporate Bond for Its Par Value