Multiple Choice
Which of the following bonds is trading at a premium?
A) a five-year bond with a $2000 face value whose yield to maturity is 7.0% and coupon rate is 7.2% APR paid semi-annually
B) a ten-year bond with a $4000 face value whose yield to maturity is 6.0% and coupon rate is 5.9% APR paid semi-annually
C) a 15-year bond with a $10,000 face value whose yield to maturity is 8.0% and coupon rate is 7.8% APR paid semi-annually
D) a two-year bond with a $50,000 face value whose yield to maturity is 5.2% and coupon rate is 5.2% APR paid monthly
E) a 20-year bond with a $5000 face value whose yield to maturity is 10.0% and coupon rate is 6.5%
Correct Answer:
Verified
Correct Answer:
Verified
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