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Assume that an investor is looking at two bonds: Bond A is a 25-year, 115% (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 25-year, 115% (semiannual pay) bond that is priced to yield 12.5% Bond B is a 25-year, 10.5% (annual pay) bond that is priced to yield 9.5%. Both bonds carry 6-year call deferments and call prices (in 6 years) of $1,070, 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 Ass % (Round to two decimal places.) The current yield of Bond B is % (Round to two decimal places) Which bond has the higher current yold? (Select the best answer below) O A. Bond B has a higher current yield of 12.45% O B. Bond A has a higher current yield of 12.45% b. The YTM of Bond Ais % (Round to two decimal placos.)

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