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P10.8 (similar to) Which of the following bonds offers the highest current yield? a. A(n) 12.36%, 20-year bond quoted at 96.1
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Answer #1

Current Yield of Bond = Coupon/Price

Current Yield of 20-year bond =12.36/96.151 =12.85%
Current Yield of 15-year bond =20.60/160.252=12.85%
Current Yield of 18-year bond =6.18/48.076=12.85%

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