A bond has a 7 percent coupon rate, a face value of $1,000, semiannual payments, and sells at par. The current yield is _____ percent and the effective annual yield is _____ percent.
A) 6.76; 6.87
B) 6.76; 6.96
C) 7.00; 7.00
D) 7.00; 7.12
E) 7.23; 7.23
Correct Answer:
Verified
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