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1. A bond is priced at $ 1027 and has a coupon rate of 5%. It has a par value of $1000, and will mature

1. A bond is priced at $ 1027 and has a coupon rate of 5%. It has a par value of $1000, and will mature in 20 years.

1A. Calculate its current yield.

1B. Explain what it means in a few lines.

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