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A Bond's Coupon Rate Calls for a Semiannual Payment of $40

Question 84

Multiple Choice

A bond's coupon rate calls for a semiannual payment of $40 in interest. The current price of the bond is $800. Therefore, its current yield must be:


A) 5 percent
B) 6 percent
C) 40 percent
D) 80 percent
E) None of the above

Correct Answer:

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