Answer:
8.86%
Explanation:
Calculation for the bond equivalent yield
Using this formula
Bond Equivalent Yield = ((Par Value - Price) / Price) * (365/ days) * 100
Let plug in the formula
Bond Equivalent Yield=(($10,000 - $9,740) / $9,740) * (365 / 110) * 100
Bond Equivalent Yield=($260 / $9,740) * 3.32 * 100
Bond Equivalent Yield=0.02669* 3.32 * 100
Bond Equivalent Yield= 8.86%
Therefore the Bond Equivalent Yield is 8.86%
