Assume that an investor is looking at two bonds: Bond A is a $1000 20-year, 9.5 percent bond that pays coupons semi-annually. The bond is priced to yield 11.5 percent, compounded semi-annually. Bond B is a $1000 20-year, 8.5 percent bond that pays coupons annually. The bond is priced to yield 7.5 percent, compounded annually. Both bonds are callable after 5 years at a price of $1060.

a. Which bond has the higher current yield?

b. Which bond has the higher yield to maturity (YTM)?

c. Which bond has the higher yield to call (YTC)?

(Use the TI BA II Plus financial calculator, and enter your answer rounded to two decimal places.)