A $1,000 face value bond is selling for $1,042.23. The bond pays interest semiannually and has 3 years to maturity. The yield to maturity is 5.86%. The current yield is ________% and the coupon rate is ________%.
A) 6.86; 6.90
B) 7.12; 7.42
C) 7.12; 7.24
D) 7.42; 7.12
E) 7.42; 7.24
Correct Answer:
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