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Harold Reese must choose between two bonds. Bond X pays $70 annual interest and has a market value of $945. It has 10 years to

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Harold Reese must choose between two bonds. Bond X pays $70 annual interest and has a market value of $945. It has 10 years to maturity Bond Z pays $60 annual interest and has a market value of $870. It has five years to maturity Assume the par value of the bonds a $1.000 a. Compute the current yield on both bonds. (Do not round Intermediate calculations. Input your answers as a percent rounded to 2 decimal places.) Current Yleid Bond X Bond 2 195 b. Which one should he select based on your answers to parto? O Bond X Bond 2 c. A drawback of currentyd is that it does not conside the totale of the bone. For example, the proximate yield to maturity on Bond X 1 9 43 percent. Vinet is the proximate ylelo to maturity on Bond 2: The exactyles to maturzy (Use the approximation formula to compute the approximate yield to maturity and use a calculator or Excel to compute the exact yield te maturity. Do not round Intermediate calculations. Input your answers as a percent rounded to 2 decimal places) A promete edo muy Exot yield trourty d. Mos your awe anged becerats 8c of the question ONO Harold Reese must choose between two bonds. Bond X pays $70 annual interest and has a market value of $945. It has 10 years to maturity Bond Z pays $60 annual interest and has a market value of $870. It has five years to maturity Assume the par value of the bonds a $1.000 a. Compute the current yield on both bonds. (Do not round Intermediate calculations. Input your answers as a percent rounded to 2 decimal places.) Current Yleid Bond X Bond 2 195 b. Which one should he select based on your answers to parto? O Bond X Bond 2 c. A drawback of currentyd is that it does not conside the totale of the bone. For example, the proximate yield to maturity on Bond X 1 9 43 percent. Vinet is the proximate ylelo to maturity on Bond 2: The exactyles to maturzy (Use the approximation formula to compute the approximate yield to maturity and use a calculator or Excel to compute the exact yield te maturity. Do not round Intermediate calculations. Input your answers as a percent rounded to 2 decimal places) A promete edo muy Exot yield trourty d. Mos your awe anged becerats 8c of the question ONO

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