Question: can you please explain why the correct answer is 7.61% (Option B)? A bond has a coupon rate of 8.2 percent, a $1,000 par value,

can you please explain why the correct answer is 7.61% (Option B)?

A bond has a coupon rate of 8.2 percent, a $1,000 par value, matures in 10 years, has a yield to maturity of 7 percent, and pays interest annually What is the current yield in year 2? a. 8.52 percent b. 7.61 percent c. 7.56 percent d. 8.21 percent e. 7.89 percent

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