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Santa Co. has annual coupon bonds outstanding with a coupon interest rate of 13%. The bonds have a $1,000 par value and 14 years to

Santa Co. has annual coupon bonds outstanding with a coupon interest rate of 13%.

The bonds have a $1,000 par value and 14 years to maturity. If the required return on the bonds is 10.65%, what is the approximate current yield on the bonds?

a. 10.25% b. 10.95% c. 11.14% d. 11.31% e. 12.16%

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