Which bond has the higher current yield

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Reference no: EM132811455

Question - Assume that an investor is looking at two bonds: Bond A is a 20-year, 9% (semiannual pay) bond that is priced to yield 10.5%. Bond B is a 20-year, 8% (annual pay) bond that is priced to yield 7.5%. Both bonds carry 5-year call deferments and call prices (in 5 years) of P1,050. (use the interpolation method in computing YTM and YTC).

a. Which bond has the higher current yield?

b. Which bond has the higher YTM?

c. Which bond has the higher YTC?

Reference no: EM132811455

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