If the Yield to Maturity of All of the Following

question 74

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 $500 face value,ten years to maturity and 5.2% annual coupon payments
• C)a bond with a $5000 face value,several 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

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Definitions:

Repression

A psychological defense mechanism where unpleasant thoughts, feelings, or desires are excluded from conscious awareness.

Denial

A psychological defense mechanism where a person refuses to accept reality or facts, effectively protecting themselves from uncomfortable or painful emotions.

Projection

Seeing one’s own unconscious content in others rather than oneself.

Feelings of Inferiority

A sense of personal inadequacy or inferiority that can influence emotional and psychological wellbeing.