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an investor must choose between two bonds An investor must choose between two bonds: Bond A pays s70 annual interest and has a market value

an investor must choose between two bonds
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An investor must choose between two bonds: Bond A pays s70 annual interest and has a market value of $750 R has 12 years to maturity. Bond B pays $75 annual interest and has a market value of $840. It has four years to maturely. Assume the par value of the bonds is $1,000 a. Compute the current yield on both bonds. (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places) b. Which bond should she select based on your answers to part a? Bond A Bond B c. A drawback of current yield is that does not consider the total life of the bond. For example, the approximate yield to maturity on Bond A is1069 percent what is me approximate yield to mastery on Bond ? The exact yield to maturity? (Use the approximation formula to compute the approximate yield to maturity and use the calculator method to compute the exact yield to maturity. Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal places)

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