Allais company s bond has an 85 annual interest payment


Allais Company s bond has an $85 annual interest payment that will mature in 10 years at a value of $1,000. The bond has a current market price of $1,140. What is the nominal yield of the bond?

7.5%

12.4%

8.5%

 

10%

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Financial Management: Allais company s bond has an 85 annual interest payment
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