A 12-year, 8% annual coupon bond has a face value of $1,000 and sells for $985. What is the bond's current yield and yield to maturity?

Question 1 (5 points) A 12-year, 8% annual coupon bond has a face value of $1,000 and sells for $985. What is the bond's current yield and yield to maturity? Current yield -8.00 % ; YTM-7.92 % Current yield-8.12 % ; YTM-8.20 % Current yield 8.20 % ; YTM - 8.37 % Current yield-8.12 % ; YTM-8.37 % Current yield-8.12 % ; YTM-7.92 % Several years ago the Haverford Company sold a $1,000 par value bond that now has 25 years to maturity and an 8.00% annual coupon that is paid quarterly. The bond currently sells for $900.90, and the company's tax rate is 40%. What is the component cost of debt for use in the WACC calculation? 5.40% 5.73% 5.98% 6.09 % 6.24%