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The current yield on a $5,000, 8 percent coupon bond selling for $4,000 is A) 8...

The current yield on a $5,000, 8 percent coupon bond selling for $4,000 is

A) 8 percent.

B) 10 percent.

C) 5 percent.

D) 20 percent.

E) none of the above

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Answer #1

Answer:B that is 10%

because current yield is equal to annual interest earned divided by current price of the bond.

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