Question

A bond has a $1,000 par value, semiannual interest payments of $40, and a current market value of $1,054. The bonds mature in 12.5 years. The coupon rate is _____ percent, the current yield is _____ percent, and the yield to maturity is _____ percent.
A. 8.00; 7.67; 7.72
B. 8.00; 7.72; 7.64
C. 8.00; 7.59; 7.33
D. 8.50; 7.87; 7.73
E. 8.50; 8.12; 8.19

Answer

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