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Compute the current yield on both bonds

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Reference no: EM132825236

Harold Reese must choose between two bonds:

Bond 1: Bond X pays $76 annual interest and has a market value of $840. It has 10 years to maturity.

Bond 2: Bond Z pays $86 annual interest and has a market value of $800. It has three years to maturity.

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

problem 1 Compute the current yield on both bonds.

Reference no: EM132825236

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