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On January 15, 2007 the XYZ Company issued a 25 year bond. The bond has a coupon rate of 7%, coupons are paid once a

On January 15, 2007 the XYZ Company issued a 25 year bond. The bond has a coupon rate of 7%, coupons are paid once a year and the face value of the bond is $1,000. Today (April 24, 2010) the bond trades at a price of $1,005.69. The yield on the bond today must be:

A) 7%

B) Greater than 7%

C) Less than 7%

D) Cannot be determined.

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