A bond has a face value of $1,000 and an annual interest payment of $44. What i is sold for $1,100 in the secondary market? O 4.4% and 4.0%, respectively O 44% and 4.4%, respectively O 4.0% and 4.4%, respectively O 4.4% and 10%, respectively

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Please see attachment and type out the correct step by step answer with proper explanation of the each option given within 40 50 minutes . Will give upvote only for the correct answer.thank you .

A bond has a face value of $1,000 and an annual interest payment of $44. What is its coupon rate, and what is its yield if it
is sold for $1,100 in the secondary market?
O 4.4% and 4.0%, respectively
O 44% and 4.4%, respectively
4.0% and 4.4%, respectively
O 4.4% and 10%, respectively
Transcribed Image Text:A bond has a face value of $1,000 and an annual interest payment of $44. What is its coupon rate, and what is its yield if it is sold for $1,100 in the secondary market? O 4.4% and 4.0%, respectively O 44% and 4.4%, respectively 4.0% and 4.4%, respectively O 4.4% and 10%, respectively
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