Final answer:
The subject of this question is Mathematics. The question is asking about a 9-year bond with a yield of 10% and annual coupon payments. To calculate the yield of the bond, you need to consider the annual coupon payments and the face value of the bond.
Step-by-step explanation:
The subject of this question is Mathematics. The question is asking about a 9-year bond that pays coupons annually and has a yield of 10%. This question involves calculations related to bond yields and interest rates.
To calculate the yield of a bond, you need to consider the annual coupon payments and the face value of the bond. In this case, the bond has a face value of $1,000 and an 8% coupon rate. To calculate the yield, you can use the formula: (Annual Coupon Payment + Face Value - Purchase Price) / Purchase Price.
For example, if you purchased the bond at a price of $964, the yield would be ($80 + $1,000 - $964) / $964 = 0.12 or 12%. This means that the bond would provide a 12% return on your investment.