An investor must choose between two bonds: Bond A pays $73 annual interest and has a market value of $930. It has 10 years to maturity. Bond B pays $63 annual interest and has a market value of $920. It has two years to maturity. Assume the par value of the bonds is $1,000.

a. Compute the current yield on both bonds.

b. Which bond should she select based on your answer to part a?

c. A drawback of current yield is that it does not consider the total life of the bond. What is the yield to maturity on Bond B?

d. Has your answer changed between parts b and c of this question in terms of which bond to select?