Question: Consider a $1,000 par value bond with a 7 percent annual coupon. The bond pays interest annually. There are nine years remaining until maturity. What

Consider a $1,000 par value bond with a 7 percent annual coupon.
  • The bond pays interest annually.
  • There are nine years remaining until maturity.

What is the current yield on the bond assuming that the required return on the bond is 10 percent?

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