Which of the following bonds offers the highest current yield? a. A(n)3.90%, 19-year bond quoted at 31.636. b. A(n) 6.50%,28-year bond quoted at 52.726. c. A(n)1.95%,23-year bond quoted at 15.818. The current yield of the bond in part a is \%. (Round to two decimal places.) Which of the following bonds offers the highest current yield? a. A(n)3.90%,19year bond quoted at 31.636. b. A(n)6.50%,28-year bond quoted at 52.726. c. A(n)1.95%,23-year bond quoted at 15.818. The current yield of the bond in part a is \%. (Round to two decimal places.) Which of the following bonds offers the highest current yield? a. A.13.90\%, 19 year bond quoted at 84.345. b. A 23.20%,28 year bond quoted at 140.755. e. A 9.30%,23 year bond quoted at 56.432 The bond's current yield measures the interest component of a bond's retum. To calculate the current yield, use the following formula: Current yield = CurtentmarketpriceofthebondAnnualinterestincome The annual coupon (annual interest income) is the coupon rate times the par value of the bond. Most corporate and municipal bonds have $1,000 par values. the corporate and municipal markets, bonds are expressed in decimals, using three places to the right of the decimal point. Thus, a quote of 87.562, as a percent of a $1,000 par bond, converts to a price of $875.62. Therefoce, for part a: Current yield =$843.45$139.00=0.1648=16.48% The current yield for part a is 16.48%. Therefore. for part b: Current yieid =$1.407.55$232.00=0.1648=16.48% The current yieid for part b is 16.48%. Therefore, for part c: Current yield =$564.32$93.00=0.1648=16.48% The curtent yield for part c is 10.48%. Al of the above bonds have a current yield of approximately 16.48%