Suppose the ZZZ Corporation sells a one-year coupon bond for $1,000.Its coupon payment is $100 for the year.In this example,the yield is ________%.If instead the price of the bond is $500,the yield is ________.

Question

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The yield is calculated as the coupon payment divided by the bond price. For a $1,000 bond with a $100 coupon, the yield is 10% ($100/$1,000). If the bond price is $500, the yield is 20% ($100/$500).

Suppose the ZZZ Corporation Sells a One-Year Coupon Bond for $1,000.Its