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A Bond Currently Priced at $1,250 with a 10% Nominal

Question 372

Multiple Choice

A bond currently priced at $1,250 with a 10% nominal yield of $100 would have a current field of _____________. The same bond priced at $800 would have a current yield of __________.


A) 9%, 12.5%
B) 12.5%, 9%
C) 8%, 12.5%
D) 12.5%, 8%

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