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A bond has a quoted price of K 1 , 0 8 0 . 4 2 . It has a face value of K 1

A bond has a quoted price of K

1, 080.42 .

It has a face value of K

1, 000,

a semi

-

annual coupon of K

30,

and a maturity of five years. What is its current yield? What is its yield to maturity? Which is bigger? Why?

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