________ 6. A bond has a $1,000 face value and a $989 market value. The bond pays interest semi-annually, has a

yield-to-maturity of 7.47 percent, and matures in 12 years. What is the current yield?

a. 6.67 percent b. 7.41 percent c. 7.47 percent d. 8.01 percent

________ 7. A $1,000 bond matures in 8 years and pays interest semi-annually. The bond is selling for $994.63 and

has a yield-to-maturity of 7.49 percent. What is the coupon rate?

a. 6.70 percent b. 6.87 percent c. 7.25 percent d. 7.40 percent