Which of the Following Bonds Is Trading at a Premium

question 56

Multiple Choice

Which of the following bonds is trading at a premium?

• A)a 2-year bond with a $50 000 face value whose yield to maturity is 5.2% and coupon rate is 5.2% APR paid monthly
• B)a 10-year bond with a $4 000 face value whose yield to maturity is 6.0% and coupon rate is 5.9% APR paid semi-annually
• C)a 5-year bond with a $2 000 face value whose yield to maturity is 7.0% and coupon rate is 7.2% APR paid semi-annually
• D)a 15-year bond with a $10 000 face value whose yield to maturity is 8.0% and coupon rate is 7.8% APR paid semi-annually

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