Bond MGCR is a $1,000 par, 6-year, 4.5 % semi-annual coupon bond. Assume a required return of 6%. (a) Calculate the current price of the bond. (b) Calculate the current yield of the bond.
A) (a) $1,000; (b) 4.5%
B) (a) $1,000; (b) 6%
C) (a) $1,117.28; (b) 6% D) (a) $1,117.28; (b) 4.5%