Problem:
Nathan Akpan is planning to invest in a seven-year bond that pays annual coupons at a rate of 7 percent. It is currently selling at $927.23.
Required:
Question: What is the current market yield on such bonds?
A. 10.4%
B. 9.5%
C. 8.4%
D. 7.5%
Note: Please answer in proper manner and show all computations