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

---

Definitions:

Disturbance Handler

A role identified in Mintzberg's managerial roles, where a manager addresses unexpected issues and crises that arise, taking corrective action when necessary.

Resource Allocator

A role within management responsible for deciding how best to distribute resources to achieve organizational goals.

Decisional Roles

Refers to the specific responsibilities and duties of managers in making choices and decisions that affect the organization and its stakeholders.

Management Function

Activities involved in the planning, organizing, leading, and controlling of an organization's resources to achieve its objectives.