Allais Company's bond has a $114 annual coupon, maturing in 10 years at a value of $1,000

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Allais Company's bond has a $114 annual coupon, maturing in 10 years at a value of $1,000 has a current market price of $1140. What is the nominal yield of the bond?
a) 9.5%
b) 11.4%
c) 10%

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Fundamentals of Futures and Options Markets

ISBN: 978-0132993340

8th edition

Authors: John C. Hull

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Question Posted: Jan 08, 2018 06:44 AM

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Allais Company's bond has a $114 annual coupon, maturing in 10 years at a value of $1,000

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a 95 Annual Coupon Payment 114 Number of Years to Maturity 10 years Current Mar...View the full answer

Fundamentals of Futures and Options Markets

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