A $1000 face value bond purchased for $982, with an annual coupon of $70, and 20 years to maturity has:

Select one:

a.A current yield equal to 7%

b.A current yield equal to 6%

c.A current yield equal to 7.22%

d.A current yield equal to 7.13%

A 30-year Treasury bond has a face value of $1,000, price of $1,300 with a $30 coupon payment. Assume the price of this bond decreases to $1,200 over the next year. The one-year holding period return is equal to:

Select one:

a.-5.38%

b.-5.83%

c.10.83%

d.10%