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2. A bond matures in 7 years and pays a 7 percent annual coupon. The bond has a face value of $1,000 and currently sells

image text in transcribed 2. A bond matures in 7 years and pays a 7 percent annual coupon. The bond has a face value of $1,000 and currently sells for $905. What is the bond's current yield? a. 7.73% b. 97.50% c. 5.62% d. 5.00% 3. The same facts as in \#2 above, what is the yield to maturity on the bond? a. 4.75% b. 6.85% c. 8.88% d. 4.29%

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