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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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