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A $1,000 par value bond is currently valued at $1,050. The bond pays interest semi-annually, has 9 years to maturity, and has a yield to
A $1,000 par value bond is currently valued at $1,050. The bond pays interest | ||||||
semi-annually, has 9 years to maturity, and has a yield to maturity of 7.72 percent. The | ||||||
coupon rate is ________ percent and the current yield is ________ percent. | ||||||
A) 8.00; 7.51 | ||||||
B) 7.80; 6.21 | ||||||
C) 8.00; 7.31 | ||||||
D) 8.50; 8.10 | ||||||
E) 8.08; 7.66 |
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