suppose that you paid $1050 for a$1000 face value, 5 percent coupon bond that will mature in exactly two years.

(5) What does the bond's current yield measure? Is it an adequate measure of your total annual return on the bond? (6) Before computing the bond's yield to maturity, could you tell if it is lower than, equal to, or higher than 5 percent? (7) Compute the bond's yield to maturity