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You just purchased a 30-year bond with 5% annual coupon, par value of $1000, and 15 years to maturity. The bond makes payments semi-annually and
You just purchased a 30-year bond with 5% annual coupon, par value of $1000, and 15 years to maturity. The bond makes payments semi-annually and the interest rate in the market is 7.0%. If the bond is currently trading at $1,065, calculate its current yield.
6.3%
5.8%
4.7%
3.5%
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