Calculating and comparing current yields.

Which of these two bonds offers the highest current yield? Which one has the highest yield to maturity?

a. A 6.55 percent, 22-year bond quoted at 52.000

b. A 10.25 percent, 27-year bond quoted at 103.625 LO6 10. Clean and dirty bond prices. You have decided to sell a 5 percent semiannual coupon bond two months after the last coupon payment. The bond is currently selling for $951.25. Answer the following questions about the bond:

a. What is the clean price of the bond?

b. What is the dirty (full) price of the bond?

c. Explain how the clean and dirty prices of the bond are relevant to the buyer of the bond. L01