Determine the current market prices of the following 1000

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Determine the current market prices of the following $1,000 bonds if the comparable rate is 10% and answer the following questions.

XY 5.25% (interest paid annually) for 20 years
AB 14% (interest paid annually) for 20 years

Which bond has a current yield that exceeds the yield to maturity?

Reference no: EM13568394

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