For Each of the Following 3 Bonds,the Yield Rate Is

question 53

Multiple Choice

For each of the following 3 bonds,the yield rate is the same.The face value is $1000 in each case.
I.Redeemable at par in 10 years,annual coupons at 8%,sells at a premium.
II.Redeemable at par in 10 years,annual coupons at 6%,sells at a premium.
III.Redeemable at par in 20 years,annual coupons at 6%,sells at a premium.
Which of the following statements regarding the prices of these bonds is true?

• A)II > I,III > II
• B)I > II,III > II
• C)I > II,II > III
• D)II > I,II > III

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Definitions:

Spell

A verbal or written formula thought to have magical force, used to bring about a specific desired outcome.

Divination Technique

A method or practice used in various cultures to seek knowledge of the future or the unknown, often involving interpreting patterns in physical objects or phenomena.

Necromancy

The practice of communicating with the dead to predict the future or discover hidden knowledge.

Geomancy

A form of divination that interprets markings on the ground, or how handfuls of soil, rocks, or sand land when tossed, to predict future events or seek guidance.