The correct answer is B (5.25%). The current yield is calculated as the annual coupon payment divided by the bond's current market price. For this bond, the annual coupon payment is $4.50 (4.5% of $100), and the current price is $85.70. Therefore, the current yield is ($4.50 / $85.70) × 100 = 5.25%.

• Option A (4.50%) is incorrect because it represents the coupon rate, not the current yield.
• Option C (5.93%) is incorrect as it includes an erroneous calculation of the yield by adding the annualized capital gain to the coupon rate, which is not the method for determining current yield.