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A bond purchased for $950 was sold for $980 after one year. the interest received during the year is $25. the bond's yield is:

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User Jamesvl
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1 Answer

4 votes

The bond's yield is shown as a percentage of the dollar amount that was originally invested.

If a bond was purchased for $950 and sold for $980 and the interest received during the year is $25, then the bond's yield is 5.79%.

The bond yield is the return that an investor receives on a bond. The investor received 5.79% back on the bond from when he first purchased it at $950 and sold it for $980.

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User Rys
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