A corporate bond in the Philippines selling for 1,000 pesos and earning annual interest of 80 pesos
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A corporate bond in the Philippines selling for 1,000 pesos and earning annual interest of 80 pesos has a current yield of 8 percent
(80 1,000). If the risk of this bond increased, investors would require a higher rate of return. If the bond value declines to 840 pesos (with the interest payment staying the same), what would be the new yield?
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