Assume that an investor is looking at two bonds. Bond A is a 20-year, 9% (semiannual pay) bond that is priced to yield 10.5%. Bond B is a 20-year, 8% (annual pay) bond that is priced to yield 7.5%. Both bonds carry 5-year call deferments and call prices (in five years) of $1,050.

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a. Which bond has the higher current yield?

b. Which bond has the higher YTM?

c. Which bond has the higher YTC?

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