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Question
ND Electric Company issued $1,000 bonds that have an annual coupon rate of 6.5%. The present market value of the bonds is $1,225. If the bonds have 17 years remaining until maturity, what is the current yield on ND Electric Company bonds?A) 5.3%
B) 6.5%
C) 7.2%
D) 13.2%
Answer
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