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Assume you're contemplating the purchase of a $1,000, 6% annual coupon income bond with 5 years remaining to maturity and that the bond currently is

Assume you're contemplating the purchase of a $1,000, 6% annual coupon income bond with 5 years remaining to maturity and that the bond currently is trading at $950. The approximate yield to maturity on this bond will be?

a. 6.0%

b. 7.2%

c. 8.1%

d. 11.3%

e. 12.1%

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