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Which bond has the higher current? yield

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Reference no: EM133110705

Assume that an investor is looking at two? bonds: Bond A is a 20?-year, 11?% ?(semiannual pay) bond that is priced to yield 11.5%. Bond B is a 20?-year, 10?% (annual pay) bond that is priced to yield 10.5?%. Both bonds carry 4?-year call deferments and call prices? (in 4 ?years) of $1,065.

a. Which bond has the higher current? yield?

b. Which bond has the higher? YTM?

c. Which bond has the higher? YTC?

Reference no: EM133110705

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