Question: a. Compute the current yield on a bond with a yield to maturity of 3.5%, a par value of $1000, a coupon rate of 7.0%

a. Compute the current yield on a bond with a yield to maturity of 3.5%, a par value of $1000, a coupon rate of 7.0% paid semi-annually, a remaining life of 11 years? (Round to 100th of a percent and enter as a percentage, e.g. 12.34% as 12.34 and state as an annual rate.)

b. Mickey and Minnie just bought a zero coupon bond for $550.60, but they cannot recall when it matures. The yield to maturity equals 9.5%. Can you help Mickey and Minnie? The bond's face value is $1000. (Assume annual discounting) (Enter your answer in years and round to 2 decimal places.)

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