Question: Consider a $1,000 par value bond with a 7 percent annual coupon. The bond pays interest annually. There are 9 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 9 years remaining until maturity. What is the current yield on the bond assuming that the required return on the bond is 10 percent?

{Note: this requires two steps to arrive at your answer}

a. 10.00%

b. 8.46%

c. 7.00%

d. 8.52%

e. 8.37%

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