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Assume that an investor is looking at two bonds: Bond A is a 10-year, 11% (semiannual pay) bond that is priced to yield 12.5%. Bond

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Assume that an investor is looking at two bonds: Bond A is a 10-year, 11% (semiannual pay) bond that is priced to yield 12.5%. Bond B is a 10-year, 10% (annual pay) bond that is priced to yield 10.5%. Both bonds carry 3-year call deferments and call prices in 3 years) of $1,065. a. Which bond has the higher current yield? b. Which bond has the higher YTM? c. Which bond has the higher YTC? a. The current yield of Bond A is . %. (Round to two decimal places.) The current yield of Bond B is %. (Round to two decimal places.) Which bond has the higher current yield? (Select the best answer below.) O A. Bond A has a higher current yield of 12.01%. O B. Bond B has a higher current yield of 12.01%. b. The YTM of Bond Ais %. (Round to two decimal places.) The YTM of Bond Bis %. (Round to two decimal places.) Which bond has the higher YTM? (Select the best answer below.) O A. Bond A has a higher YTM of 12.5%. O B. Bond B has a higher YTM of 12.5%. c. The YTC of Bond Ais %. (Round to two decimal places.) The YTC of Bond B is %. (Round to two decimal places.) Which bond has the higher YTC? (Select the best answer below.) O A. Bond A has a higher YTC of 16.43%. O B. Bond B has a higher YTC of 16.43%

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