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25 February, 13:04

A corporate bond matures in one year. The bond promises a $50 coupon and a principal payment of $1,000 at maturity. If an investor buys the bond for $938.10, calculate the promised yield on the bond

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  1. 25 February, 13:38
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    Promised yield = 1050/938.10 = 11.93%
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