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The income of a bond is a major variable in the bond valuati

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The income of a bond is a major variable in the bond valuation equation. Bond Yields are also widely quoted in business journals as tools to compare various securities on income streams and total return.

A bond currently sells for $875. It has a 7-year maturity, an annual coupon of $75, and a par value of $1000. What is its yield to Maturity? What is its current yield?

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