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

question 76

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 discount.
II.Redeemable at par in 10 years,annual coupons at 6%,sells at a discount.
III.Redeemable at par in 20 years,annual coupons at 6%,sells at a discount.
Which of the following statements regarding the prices of these bonds is true?

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

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Definitions:

Classical Conditioning

A teaching mechanism that involves linking an environmental trigger with an innate stimulus, culminating in an acquired response.

Different Responses

Variations in reactions or behaviors exhibited by individuals when exposed to the same stimuli or situations, influenced by personal, cultural, or situational factors.

Stimulus Generalization

A process in classical conditioning by which a response that originally occurs to a specific stimulus also occurs to different, but similar, stimuli.

Conditioned to Fear

The process by which individuals learn to fear certain objects, people, or situations due to previous experiences of association with negative outcomes.