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Sandra purchased bond B one year ago when the market interest rate was five. One percent APR at the time she paid $812 for the
Sandra purchased bond B one year ago when the market interest rate was five. One percent APR at the time she paid $812 for the bond today. The price of the bond is $910 assuming that Bond B has a 4% annual coupon rate and makes semi-annual coupon payments. How does Sandras bond rate of return over the last year compared to the current yield today?
Bond rate of return > current yield
Not enough information to determine
Bond rate of return = current yield
Bond rate of return < current yeild
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