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A ten year junk bond has a market price of $1100. This bond also pays a coupon of $17.50 quarterly, what is the current yield?

A ten year junk bond has a market price of $1100. This bond also pays a coupon of $17.50 quarterly, what is the current yield?

3.5%

1.75%

6.36%

7.5%

7.0%

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