Harold Reese must choose between two bonds:

Bond X pays $$82$ annual interest and has a market value of $$935.$ It has $12$ years to maturity.

Bond Y pays $$75$ annual interest and has a market value of $$920.$ It has eight years to maturity.

Assume the par value of the bonds is $$1,000.$

Compute the current yield on both bonds.

Note: Do not round intermediate calculations. Input your answers as a percent rounded to $2$ decimal places.

Which bond should he select based on your answers to part a$?$

multiple choice $1$

Bond X

Bond Z

A drawback of current yield is that it does not consider the total life of the bond. For example, the yield to maturity on Bond X is $9\mathrm{.}10$ percent. What is the yield to maturity on Bond Y$?$