Dan Thomas owns some 9 bonds from TTR, Inc. that are due in 5 years, 3 months. He is considering selling these and buying some Satco 11% bonds due in 17 years. If he can sell his TTR at 92 and buy Satco at 102 7/8 , which bonds would give him a better rate of current yield?

Answer rating: 100% (QA)

To compare the current yield of the TTR bonds and Satco bonds we can calculate the current yields fo... View the full answer