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Posted on Jul 19, 2024

Assume an investor buys an 8 percent semiannual bond with 8 years remaining to maturity, when market rates are 6%. If this investor pays $1,125.61

Assume an investor buys an 8 percent semiannual bond with 8 years remaining to maturity, when market rates are 6%. If this investor pays $1,125.61 for the bond, what is the investors current yield?

3.55%

7.11%

8.00%

10.00%

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