### What is the current yield and yield to maturity

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##### Reference no: EM131027018

BMW issued 20 year \$1,000 bonds in 2014 with an annual coupon rate of 7.45%. In 2016 after the coupon for 2016 is paid, that bond can be purchased for \$1,285. If you bought this bond, what is the current yield and yield to maturity?

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