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Computation of current yield

The Boston Clothing Co. has $1000 face value bond outstanding with a market price of $1012. The bond pays interest annually, matures in 12 years, and has a yield to maturity of 7.842 percent. What is the current yield ?

a. 7.75 Percent
b. 7.91 Percent
c. 8.00 Percent
d. 8.10 Percent
e. 8.16 Percent

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