What is the yield to the investor

Reference no: EM13302905

A U.S. government bond matures in 10 years. Its quoted price is now 97.8, which means the buyer will pay $97.80 per $100 of the bond's face value. The bond pays 5% interest on its face value each year. If $10,000 (the face value) worth of these bonds is purchased now, what is the yield to the investor who holds the bonds for 10 years?

Reference no: EM13302905

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