If the annual interest rate printed on the face of a bond is 16 percent, the face value of the bond is $1,000, and the current market price of the bond is $200, what is the current yield on the bond?

A. 80.0 percent.
B. 200.0 percent.
C. 5.5 percent.
D. 16.0 percent.


Answer: A

Economics

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