Answer:
10%
Explanation:
The nominal yield of any bond is equal to its coupon rate or contract rate. n this case, the investor bought 5 GE bonds that paid 10% coupon rate, therefore the nominal yield = 10%
The current yield of a bond is the actual yield that the bond pays, in this case the current yield = coupon rate / bond's market price = 10 / 85 = 11.76%
