The information of two bonds is provided below, and both have a face value of $1,000:...

 

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The information of two bonds is provided below, and both have a face value of $1,000: Bond A: 6.50% percent, 20-year bond quoted at 75.25 Bond B: 10.25% percent, 30-year bond quoted at 128.50 Required: a) Calculate the Current Yield for the above two bonds. Which bond offers higher Current Yield (CY)? (15 marks) b) Use the formular of Approximate Yield (AY) to calculate Yield to Maturity for both bonds.< (Hint: Do not use the formular in your financial calculator) Which bond offers higher Yield to Maturity (YTM)? (15 marks) You must show your computations to receive partial credit. Present your answers using the format below and put them on the answer book. Show the yields as percentages with four decimal places. Round the dollar amounts in your calculations to two decimal places.< a) Current Yield (CY) Which bond offers higher CY? b) Yield to Maturity (YTM) using AY Formular Which bond offers higher YTM? Bond A Bond B The information of two bonds is provided below, and both have a face value of $1,000: Bond A: 6.50% percent, 20-year bond quoted at 75.25 Bond B: 10.25% percent, 30-year bond quoted at 128.50 Required: a) Calculate the Current Yield for the above two bonds. Which bond offers higher Current Yield (CY)? (15 marks) b) Use the formular of Approximate Yield (AY) to calculate Yield to Maturity for both bonds.< (Hint: Do not use the formular in your financial calculator) Which bond offers higher Yield to Maturity (YTM)? (15 marks) You must show your computations to receive partial credit. Present your answers using the format below and put them on the answer book. Show the yields as percentages with four decimal places. Round the dollar amounts in your calculations to two decimal places.< a) Current Yield (CY) Which bond offers higher CY? b) Yield to Maturity (YTM) using AY Formular Which bond offers higher YTM? Bond A Bond B