If a bond pays $90 interest annually,matures after ten years,and costs $1,100,the current yield is
4) If a $1,000 bond costs $1,000 and pays $90 interest,
1) the current yield is 9 percent
2) the yield to maturity is 9 percent
3) the bond is selling for par
A) 8.2 percent
B) 10.1 percent
C) 9.0 percent
D) 9.6 percent
Correct Answer:
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