# Consider two bonds that each h

Consider two bonds that each have a par value of \$100, pay coupons semi-annually, and have a maturity of 5 years. Bond A pays a coupon of 3%/year, and bond B pays a coupon of 4.5%/year. If the yield-to-maturity on all 5-year bonds is 4%/year, then which of the following is true?

A. The price of bond A is below \$100, and the price of bond B is below \$100.
B. The price of bond A is above \$100, and the price of bond B is above \$100.
C. The price of bond A is above \$100, and the price of bond B is below \$100.
D. The price of bond A is below \$100, and the price of bond B is above \$100.

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# Consider two bonds that each h

1. Consider two bonds that each have a par value of \$100 and pay coupons semi-annually. Bond A is a 4-year, 2.25%-coupon bond with a yield-to-maturity of 5.35%, and bond B is a 4-year, 2.25%-coupon bond with a yield-to-maturity of 5.65%? Agree or disagree: the price of bond A is smaller than the price of bond B.

Agree

Disagree

2. Consider two bonds that each have a par value of \$100, pay coupons semi-annually, and have a maturity of 5 years. Bond A pays a coupon of 3%/year, and bond B pays a coupon of 4.5%/year. If the yield-to-maturity on all 5-year bonds is 4%/year, then which of the following is true?

 The price of bond A is above \$100, and the price of bond B is below \$100. The price of bond A is below \$100, and the price of bond B is below \$100. The price of bond A is above \$100, and the price of bond B is above \$100. The price of bond A is below \$100, and the price of bond B is above \$100

### Place this order or similar order and get an amazing discount. USE Discount code “GET20” for 20% discount

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