1)
Coupon = 5% of 1000 = 50
Payment of = $50
2)
Final payment = Final coupon payment + face value
Final payment = $50 + $1000
Final payment = $1050
3)
Current yield = (Annual coupon / price) * 100
Current yield = (50 / 990) * 100
Current yield = 5.05%
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Round your answer to the nearest dollar.
$
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