An investor is considering a discount bond that promises a payment of $14,400 in two years. If today's price for the bond decreases from 13,900 to 13,100, then the yield rises from to.
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An investor is considering a discount bond that promises a payment of $14,400 in two
years. If today's price for the bond decreases from 13,900 to 13,100, then the yield
rises from
to.
Bonds are issued by the company to meet the financial requirements of the company without losing its ownership. They are issued at par, discount, or premium. At the time of redemption, the bond value is equal to the face value of the bond.
Face Value = $14,400
Bond Price = $13,900
Time Period = 2 years
New Price = $13,100
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