Normal yield of the bond


Problem:

Allais Company's bond was a $114 annual coupon, maturing in 10 years at a value of $1,000 has a current market price of $1140.

Required:

Question: What is the normal yield of the bond?

  • 9.5%
  • 12.4%
  • 11.4%
  • 10%

Note: Provide support for your underlying principle.

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Accounting Basics: Normal yield of the bond
Reference No:- TGS0889866

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