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If the Yield to Maturity of All of the Following

Question 28

Multiple Choice

If the yield to maturity of all of the following bonds is 6%, which will trade at the greatest premium per $100 face value?


A) a bond with a $10,000 face value, four years to maturity and 6.2% semiannual coupon payments
B) a bond with a $500 face value, seven years to maturity and 5.2% annual coupon payments
C) a bond with a $5,000 face value, seven years to maturity and 5.5% annual coupon payments
D) a bond with a $1,000 face value, five years to maturity and 6.3% annual coupon payments

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