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Harold Reese must choose between 2 bonds: Bond X pays $80 annual interest and gas a...

Harold Reese must choose between 2 bonds:

Bond X pays $80 annual interest and gas a market value of $820. It gas 10 years of maturity

Bond Z pays $90 annual interest and has a market value of $780. In the next six years to maturity is soon as the part value of the bond is $1000

a. Compute the current year old on both bonds ( do not round in to mediate calculations. And put your answer as a percent rounded to two decimal places.)

b. which bond should be selected based on your answers to part a?

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 of bond ex is 10.99%. What is the approximate y’all the maturity on bond is he? The exact yield to maturity? ( UC approximation formula to compute the approximate year old to maturity and use the calculation method to compute the exact field to maturity do not round intermediate calculations and put your answer to as a percent rounded to two decimal places.)

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