A bond purchased at $900 with a 5% coupon and a 5-year maturity has a current yield of:

A bond purchased at $900 with a 5% coupon and a 5-year maturity has a current yield of:

A bond purchased at $900 with a 5% coupon and a 5-year maturity has a current yield of:


A) 7.4%.

B) 7.8%.

C) 5.6%.

D) 5%.



Answer: C) 5.6%.


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