Which of the Following Bonds Is Trading at a Premium

question 83

Multiple Choice

Which of the following bonds is trading at a premium?

• A) a five-year bond with a $2,000 face value whose yield to maturity is 7.0% and coupon rate is 7.2% APR paid semiannually
• B) a ten-year bond with a $4,000 face value whose yield to maturity is 6.0% and coupon rate is 5.9% APR paid semiannually
• C) 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 semiannually
• D) a two-year bond with a $50,000 face value whose yield to maturity is 5.2% and coupon rate is 5.2% APR paid monthly

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Definitions:

Nonconformity

The refusal to align with established norms, values, or practices of society.

Functionalist Theories

Theories in sociology that view society as a complex system whose parts work together to promote solidarity and stability.

Societal Cohesion

is the bond that unites a society through shared beliefs, values, and practices, fostering a sense of belonging and cooperation among its members.

Deviance

A rephrasing of deviant, it refers to actions or behaviors that violate societal norms and expectations, often resulting in social disapproval.