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9) A bond with a face value of $1,000 has annual coupon payments of $100 and was issued seven years ago. The bond currently sells
9) A bond with a face value of $1,000 has annual coupon payments of $100 and was issued seven years ago. The bond currently sells for $1,085, has eight years left to maturity. This bond's ________ must be less than 10%.
A) current yield and coupon rate
B) coupon rate
C) yield to maturity and current yield
D) current yield
The answer C but I need to know how is it calculated. (using financial calculator if required)
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