Do-Well Bonds Have a Face Value of $1,000 and Are

question 52

Multiple Choice

Do-Well bonds have a face value of $1,000 and are currently quoted at 867.25. The bonds have coupon rate of 6.5 percent. What is the current yield on these bonds?

• A) 7.45 percent
• B) 7.67 percent
• C) 7.49 percent
• D) 8.03 percent
• E) 8.47 percent

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