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Heather purchased a five-year $4,500 bond below par value for $3,625 with a coupon of 2.7%. What was her yield? 3.2% 2.7% 3.4% 2.2%
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Her current yield is: 121.50 ÷ 3,625 = 0.0335 = 3.35% (rounded to 3.4%)
where do you get the 121.50 from?
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