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4) Alaska Power Company issued $1,000 bonds that have an annual coupon rate of 6.5%. The present market value of the bonds is $1,225. If
4) Alaska Power Company issued $1,000 bonds that have an annual coupon rate of 6.5%. The present market value of the bonds is $1,225. If the bonds have 17 years remaining until maturity, what is the current yield on Alaska Power Company bonds? A) 5.3% B) 6.5% C) 7.2% D) 13.2%
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