.An investor must choose between two bonds:

Bond A pays $70 annual interest and has a market value of $750. It has 12 years to maturity.

Bond B pays $75 annual interest and has a market value of $840. It has four years to maturity.

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 answers as a percent rounded to 2 decimal places.)

Bond A

Bond B

Which bond should she select based on your answers to part a?

Bond ABond B