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Bill Board must choose between two bonds: Bond A pays $ 8 5 annual interest with semiannual payment and has a market value of $

Bill Board must choose between two bonds: Bond A pays $85 annual interest with semiannual payment and has a market value of $900. It has 10 years to maturity. Bond B pays $75 annual interest with semiannual payment and has a market value of $950. It has 2 years to maturity. Assume the par value of the bonds is $1,000. a. Compute the current yield on both bonds. (Round the final answers to 2 decimal places.) Current yield Bond A % Bond B % b. Which bond should he select based on the answer to part a? multiple choice 1Bond ABond B

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