Question: a. Compute the current yield on both bonds. (Do not round intermediate calcula. In ut your answers as a percent rounded to 2 decimal places.)

a. Compute the current yield on both bonds. (Do not round intermediate calcula. In ut your answers as a percent rounded to 2 decimal places.) Current Yield Bond X Bond Z 5 81 % b. Which bond should he select based on your answers to part a? Bend X O Bond z c. A drawback of current yield is that it does not consider the total life of the bond. For example, the approximate yield to maturity on Bond X is 8.19 percent. What is the approximate yield to maturity on B maturity? Use the approximation formula to compute the approximate yield to maturity and use the calculator method to compute the exact yield to maturity. Do not round Intermediate calcu answers as a percent rounded to 2 decimal places.) Approximate yield to maturity Exact yield to maturity d. Has your answer changed between parts and cof this question? No a. Compute the current yield on both bonds. (Do not round intermediate calcula. In ut your answers as a percent rounded to 2 decimal places.) Current Yield Bond X Bond Z 5 81 % b. Which bond should he select based on your answers to part a? Bend X O Bond z c. A drawback of current yield is that it does not consider the total life of the bond. For example, the approximate yield to maturity on Bond X is 8.19 percent. What is the approximate yield to maturity on B maturity? Use the approximation formula to compute the approximate yield to maturity and use the calculator method to compute the exact yield to maturity. Do not round Intermediate calcu answers as a percent rounded to 2 decimal places.) Approximate yield to maturity Exact yield to maturity d. Has your answer changed between parts and cof this question? No

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