Problem:
The 7 percent coupon bonds of Firm X are selling for 102 percent of par value. The bonds mature in 6 years and pay interest semiannually.
What is the current yield, yield to maturity and effective annual yield?
1. 6.86; 6.59; 6.70
2. 6.86; 6.23; 6.53
3. 6.37; 6.23; 6.53
4. 6.37; 6.59; 6.86
5. 6.59; 6.65; 6.70