A 68 14-year semiannual bond at 89231 2 a 115 24-year


Question : A 6.8%, 14-year semiannual bond at 89.231 2. A 11.5%, 24-year semiannual bond at 99.196 Assume that the par value of the bond is $1,000.

a. Which of these two bonds offers the highest current yield? (1 or 2)

b. Which one has the highest yield to maturity? (1 or 2)

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Financial Management: A 68 14-year semiannual bond at 89231 2 a 115 24-year
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