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(a) A bond matures in 11 years and pays a 5 percent annual coupon. The bond has a face value of $1,000 and currently sells

  1. (a) A bond matures in 11 years and pays a 5 percent annual coupon. The bond has a face value of $1,000 and currently sells for $959. What is the bonds current yield?
    1. 4.00%
    2. 97.50%
    3. 4.35%
    4. 5.21% 1. (b) The same facts as in #1 above, what is the yield to maturity on the bond?
      1. 4.75%
      2. 8.12%
      3. 5.51%
      4. 7.28%

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