Determine what is the bond current yield

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A $1,000 par value bond paying a 8% semi-annual coupon with 19 years to maturity is priced at $1105. This bond is callable in 11 years at a price of $1,050.

Problem 1: What is this bond's Current Yield?

Group of answer choices

Option 1: 6.93%

Option 2: 7.24%

Option 3: 7.85%

Option 4: 6.54%

Reference no: EM132920755

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