Which of the following bonds offers the highest current yield?
a. A 10.14 %, 20-year bond quoted at 106.763.
b. A 16.90%, 15-year bond quoted at 177.939.
c. A 5.07%, 18-year bond quoted at 53.382.
The current yield of the bond in part A is %. (Round to two decimal places.)
The current yield of the bond in part B is %. (Round to two decimal places.)
The current yield of the bond in part C is %. (Round to two decimal places.) Which of the three bonds offers the highest current yield (Select the best answer below.)
A. The bond in part b has the highest current yield because it has the highest coupon rate and the highest market value.
B. All of the above bonds have a current yield of approximately 9.50%.
C. The bond in part a has the highest current yield because it is held for the longest period of time