A $1,000 Par Value Bond Is Currently Valued at $1,055

A $1,000 par value bond is currently valued at $1,055.The bond pays interest semi-annually,has 10 years to maturity,and has a yield to maturity of 7.3 percent.The coupon rate is ________ percent and the current yield is ________ percent.

A) 7.80; 6.21
B) 8.00; 7.31
C) 8.00; 7.51
D) 8.08; 7.66
E) 8.50; 8.30

Correct Answer:

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