For Each of the Following 3 Bonds: Yield Rate Is

question 83

Multiple Choice

For each of the following 3 bonds: yield rate is the same,face value is $1000,each bond is redeemable at par and each bond is sold at a premium (P > C) .
I.A 10 year bond with annual coupons at 8%,sells for P_I
II.A 10 year bond with annual coupons at 6%,sells for P_II
III.A 20 year bond with annual coupons at 6%,sells for P_III
Which of the following statements regarding the prices of these bonds is true?

• A)P_II > P_I,P_III > P_I
• B)P_I > P_II,P_II > P_III
• C)P_II > P_I,P_II > P_III
• D)P_I > P_II,P_III > P_II

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Definitions:

Object Relations Theory

A psychoanalytic theory focusing on relationships and the impact of early interactions with caregivers on psychological development.

Spatial Relationships

The concept of how objects or shapes are located in relation to each other in space.

Object Relations Theory

A psychoanalytic theory emphasizing the importance of early relationships and their effect on emotional development and adult mental health.

Mother - Child

Describes the relationship or bond between a mother and her child, often focusing on attachment, development, and emotional dynamics.