Question
Allais Company s bond has an $85 annual interest payment that will mature in 10 years at a value of $1,000. The bond has a
Allais Company s bond has an $85 annual interest payment that will mature in 10 years at a value of $1,000. The bond has a current market price of $1,140. What is the nominal yield of the bond?
7.5%
12.4%
8.5%
10%
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Handbook Of The Economics Of Finance Volume 2A
Authors: George M. Constantinides, Milton Harris, Rene M. Stulz
1st Edition
0444535942, 978-0444535948
