Final answer:
The yield on the bond will be equal to the effective rate of return on the investment.
Step-by-step explanation:
The bond issue will be priced so that an investor purchasing the bonds will earn an effective rate of return on the investment equal to the yield on the bond. The yield on a bond represents the total return an investor can expect to earn, taking into account both the interest payments and any capital gains or losses. It is calculated by dividing the difference between the final payment received and the initial investment by the initial investment.