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A $1,000 par value bond is currently valued at $1,050. The bond pays interest semi-annually, has...

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Finance

A $1,000 par value bond is currently valued at $1,050. The bondpays interest semi-annually, has 9 years to maturity, and has ayield to maturity of 7.72 percent. The coupon rate is _____ percentand the current yield is _____ percent.

Multiple Choice

a. 7.80; 6.21

b. 8.00; 7.31

c. 8.00; 7.51

d. 8.08; 7.66

e. 8.50; 8.10

Answer & Explanation Solved by verified expert
4.3 Ratings (703 Votes)
Information provided Par value future value 1000 Current price present value 1050 Time 9 years2 18 semiannual periods Yield to maturity 2722 136 per    See Answer
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Transcribed Image Text

A $1,000 par value bond is currently valued at $1,050. The bondpays interest semi-annually, has 9 years to maturity, and has ayield to maturity of 7.72 percent. The coupon rate is _____ percentand the current yield is _____ percent.Multiple Choicea. 7.80; 6.21b. 8.00; 7.31c. 8.00; 7.51d. 8.08; 7.66e. 8.50; 8.10

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