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Assume that an investor is looking at two bonds. Bond A s a 20-year, 9% sem annual pay bond that is priced to yield 9.5%.
Assume that an investor is looking at two bonds. Bond A s a 20-year, 9% sem annual pay bond that is priced to yield 9.5%. Bond B is a 20-year 8% annual pay bond that is priced to yield 7.5%. Both bonds carry 3-year call deferments and call prices (in 3 years) of $1,060. 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 L%. (Round to two decimal places.) The current yield of Bond B is Which bond has the higher current yield? (Select the best answer below.) OA. Bond A has a higher current yield of 9.42%. [ %, (Round to two decimal places.) B. Bond B has a higher current yield of 9.42%. b, The YTM of Bond A is l )%. (Round to two decimal places.) The YTM of Bond B is Which bond has the higher YTM? (Select the best answer below.) O%. (Round to two decimal places.) A. Bond B has a higher YTM of 9.5%. O B. Bond A has a higher YTM of 9.5%. C. The YTC of Bond A is | %. (Round to two decimal places.)
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