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Assume that an investor is looking at two bonds: Bond A is a10-year,10%(semiannual pay) bond that is priced to yield12%.Bond B is a10-year,9%(annual pay) bond

Assume that an investor is looking at two bonds: Bond A is a10-year,10%(semiannual pay) bond that is priced to yield12%.Bond B is a10-year,9%(annual pay) bond that is priced to yield9.5%.Both bonds carry5-yearcall deferments and call prices (in 5 years) of $1,050.

a. Which bond has the higher current yield?

b. Which bond has the higher YTM?

c. Which bond has the higher YTC?

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