If the Yield to Maturity of All of the Following

question 71

Multiple Choice

If the yield to maturity of all of the following bonds is 6%, which trades 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 $1000 face value, five years to maturity and 6.3% annual coupon payments
• C) a bond with a $500 face value, ten years to maturity and 5.2% annual coupon payments
• D) a bond with a $5000 face value, several years to maturity and 5.5% annual coupon payments