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Assume that an investor is looking at two bonds. Bond A is a 30-year, 10% (semiannual pay) bond that is priced to yield 10.5%. Bond
Assume that an investor is looking at two bonds. Bond A is a 30-year, 10% (semiannual pay) bond that is priced to yield 10.5%. Bond B is a 30-year, 9% (annual pay) bond that is priced to yield 8.5%. Both bonds carry 6-year call deferments and call prices (in 6 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 (Round to two decimal places.)
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