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Question
A $1000 face value bond, with one year to maturity that sells for $950 and has a $40 annual coupon has a:A. current yield and yield to maturity of 4.00%.
B. yield to maturity that equals the current yield.
C. coupon rate of 4.00% and a current yield that is below this.
D. current yield of 4.21%.
Answer
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