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A bond matures in 5 years and pays a 4.00% annual coupon. The bond has a face value of $1,000 and currently sells for $920.

A bond matures in 5 years and pays a 4.00% annual coupon. The bond has a face value of $1,000 and currently sells for $920. What is the bonds current yield?
1. 4.35%
2. 6.67%
3. 3.50%
4. 4.00%

Same facts as #3, what is the yield to maturity of the bond ?
1. 8.17%
2. 5.89%
3. 4.66%
4. 2.50%

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