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:

Sterile Capped Needle

A needle that has been sterilized and covered with a cap to maintain its sterility until it is used for medical procedures.

Temporal Lobes

Regions of the cerebral cortex located at the sides of the brain, involved in processing auditory information and encoding memory.

Cerebral Cortex

The outer layer of the brain's cerebrum, involved in complex brain functions such as thought, memory, and consciousness.

Limbic System

A complex system of nerves and networks in the brain, involved in instinct and mood control, governing emotional behavior.