The investor would receive a current yield equal to

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Suppose that Ford issues a coupon bonds at a price of $1,000, which is the same as the bond's par value.

Assume the bond has a coupon rate of 4.5%, pays the coupon once per year, and has a maturity of 20 years.

If an investor purchased this bond at the price of $1,000, for each year except the last year, the investor would receive a payment of 45. (Round your answers to the nearest dollar)

When the bond matures, t investor would receive a final payment of $1045 . (Round your answers to the nearest dollar.) Now suppose the price of the bond changes to $1, 060.

Assuming an investor purchased the bond at a price of $1, 060, the investor would receive a current yield equal to ()

Reference no: EM132008479

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