You bought a six-year bond issued by Runaway Corp. four years ago. At that time,

$1.49 Excluding Tax

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QUESTION:

You bought a six-year bond issued by Runaway Corp. four years ago. At that time, you paid $974.33 for the bond. The bond pays a coupon rate of 7.375 percent, and coupon payments are made semiannually. Currently, the bond is priced at $1,023.56. What yield can you expect to earn on this bond if you sell it today?


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