A bond has a coupon rate of 5.65 percent, a face value of $1,000, semiannual payments, and sells at par. The current yield is _____ percent and the effective annual yield is _____ percent.

A. 5.73; 5.81
B. 5.73; 5.65
C. 5.73; 5.73
D. 5.65; 5.73
E. 5.65; 5.81

Ans: D. 5.65; 5.73

Business

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