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Consider a $ 1 , 0 0 0 par value bond with a 7 % annual coupon. The bond pays interest annually. There are 2

Consider a $

1, 000

par value bond with a

7 %

annual coupon. The bond pays

interest annually. There are

2

years remaining until maturity. What is the current

yield on the bond assuming that the required return on the bond is

10 % ?

Assume

simple compounding ANSWER WITH EXCEL

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