Question: Financial Planning Exercise 12 Calculating and comparing current yields Two bonds are given. a. A 7.4%, 25-year bond at 152.691 b. A 13%, 24-year bond

Financial Planning Exercise 12 Calculating and comparing current yields Two bonds

Financial Planning Exercise 12 Calculating and comparing current yields Two bonds are given. a. A 7.4\\%, 25-year bond at 152.691 b. A 13\\%, 24-year bond at 192.057 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 \ \ has the highest current yield. las the highest yield to maturity? Round your answers to two decimal places. Do not round intermediate calculations. Bond a \ Bond \$ b \$ \ has the highest yield to matiruty

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