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A) Which bond offers the lowest yield to maturity? (The par value of bonds are $1,000) B) Which bond will most likely experience the smallest

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A) Which bond offers the lowest yield to maturity? (The par value of bonds are $1,000)

B) Which bond will most likely experience the smallest percent change in price if the market discount rates for all three bonds increase by 100 basis points? (100 bps is translated into 1%) (The par value of bonds are $1,000)

Bond Price Coupon Rate Time-to- Maturity $1018.86 5% 2 years B $1000.00 6% 2 years C $973.27 5% 3 years

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