Harry and Belinda Johnson have saved $6000 toward a down payment on a luxury automobile they hope to purchase in the next three to fi ve years. Because they are not receiving a very high rate of return on their money market account, they are seeking greater yields with bond investments. Examine the following table, which identifi es eight investment alternatives, and then respond to the questions that follow. The coupon rates vary because the issue dates range widely, and market prices are above par because older bonds paid higher interest than today’s issues.

(a) What is the current yield of each investment alternative?

Use Equation (14.5) or visit the Garman/Forgue companion website. (Write your responses in the proper column in the table.)