A $1,000 Par Value Bond Is Currently Valued at $1,050

question 20

Multiple Choice

A $1,000 par value bond is currently valued at $1,050. The bond pays interest semiannually, has 9 years to maturity, and has a yield to maturity of 7.72%. The coupon rate is ________% and the current yield is ________%.

• 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

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