In 2020, a customer buys 5 GE 10% debentures, M '29, at 85. The interest payment dates are Feb 1st and Aug 1st. The bonds are callable as of 2025 at 103. The nominal yield on the bonds is:

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%