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2) Bonds of Matrix Corporation with a par value of $1,000 sell for $960, mature in 5 years and have a 7% coupon rate paid

2) Bonds of Matrix Corporation with a par value of $1,000 sell for $960, mature in 5 years and have a 7% coupon rate paid annually. Calculate the:

a) Current yield (10 pts)

b) Yield to maturity (15 pts)

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