Cash & Bonds bonds

Discussion in 'Other Asset Classes' started by Dally_M, 27th Sep, 2010.

Join Australia's most dynamic and respected property investment community
  1. Dally_M

    Dally_M New Member

    Joined:
    1st Jul, 2015
    Posts:
    3
    Location:
    Perth, WA
    Which of the following newly issued bonds is trading at a premium to par?

    A) a ten-year bond with a $4000 face value whose yield to maturity is 6.0% per annum and coupon rate is 5.9% per annum paid semiannually

    B) a five-year bond with a $2000 face value whose yield to maturity is 7.0% per annum and coupon rate is 7.2% per annum paid semiannually

    C) a 15-year bond with a $10,000 face value whose yield to maturity is 8.0% per annum and coupon rate is 7.8% per annum paid semiannually

    D) a two-year bond with a $50,000 face value whose yield to maturity is 5.2% per annum and coupon rate is 5.2% per annum paid annually