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An annual coupon bond is currently selling at a 5.5% discount from its face value. The bond price is expected to be $960 in one
An annual coupon bond is currently selling at a 5.5% discount from its face value. The bond price is expected to be $960 in one year. If the yield-to-maturity of the bond 11%, how much is the expected current yield of the bond?
1.59%
9.41%
12.59%
Cannot be determined without knowing the coupon rate.
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