If the Yield to Maturity of All of the Following

question 50

Multiple Choice

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

• A)a bond with a $10,000 face value,four years to maturity and 6.2% semi-annual coupon payments
• B)a bond with a $500 face value,ten years to maturity and 5.2% annual coupon payments
• C)a bond with a $5000 face value,seven years to maturity and 5.5% annual coupon payments
• D)a bond with a $1000 face value,five years to maturity and 6.3% annual coupon payments
• E)a bond with a $100 face value,3 years to maturity and 6.0% annual coupon payments

---

Definitions:

Standard-Definition

A level of quality or achievement that is considered acceptable or typical.

SD

Stands for Secure Digital, a non-volatile memory card format used in portable devices, including digital cameras and smartphones.

Full Screen

A display mode that allows a user interface or video to occupy the whole screen, hiding the operating system's interface.

Display Device

An output device for presentation of information in visual or tactile form, such as monitors, projectors, or braille readers.