Question: Chapter 12 Financial Planning Exercise 12 Calculating and comparing current yields Two bonds are given. A 7.1%, 17-year bond at 135.623 A 6.5%, 27-year bond

Chapter 12 Financial Planning Exercise 12 Calculating and comparing current yields Two bonds are given. A 7.1%, 17-year bond at 135.623 A 6.5%, 27-year bond at 110.893 Assume that the par value of the bonds is $1,000 and use annual compounding of interest. Which of these two bonds offers the highest current yield? Round your answers to two decimal places. Do not round intermediate calculations. Bond a % Bond b % -Select- has the highest current yield. Which one has the highest yield to maturity? Round your answers to two decimal places. Do not round intermediate calculations. Bond a % Bond b % -Select- has the highest yield to matiruty.

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