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( Expected rate of return and current yield ) Time Warner has bonds that are selling for $791. The coupon interest rate on the bonds

(Expected rate of return and current yield) Time Warner has bonds that are selling for $791. The coupon interest rate on the bonds is 7.80 percent and they mature in 19 years. What is the yield to maturity on thebonds? What is the currentyield?

a. The yield to maturity on the bond is

%. (Round to two decimalplaces.)

b. The current yield is

%. (Round to two decimalplaces.)

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