2n years 3n years Bond term Face value Redemption Coupon Market value rate price (Frequency) Bond A n years 2000 2200 5% 2075.3 (Annual) Bond B 1000 1100 5% 1180.6 (Annual) Bond C 1000 1100 5% 1150.2 (Annual) Question: Which bond has the highest annual effective yield rate? Which bond has the lowest annual effective yield rate? (A) Bond A has highest yield rate and Bond B has lowest yield rate. (B) Bond A has highest yield rate and Bond C has lowest yield rate. (C) Bond B has highest yield rate and Bond A has lowest yield rate. (D) Bond B has highest yield rate and Bond C has lowest yield rate. (E) Bond Chas highest yield rate and Bond A has lowest yield rate. (F) Bond C has highest yield rate and Bond B has lowest yield rate. (Hint for Problem 3(b): You may consider premium-discount formula.)