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Determine whether bond #1 below is trading at a premium, at par, or at a discount? Bond No Face Value Redemption Coupon Rate Years to

Determine whether bond #1 below is trading at a premium, at par, or at a discount?

Bond No

Face Value

Redemption

Coupon Rate

Years to Redemption

Yield Rate

1.1.

$1000

At Par

j2=8%

10

j2=10%

2.2.

$5000

At Par

j2=12%

25

j2=9%

3.3.

$2000

At Par

j2=6.5%

5

j2=6.5%

4.4.

$1000

At 105

j2=5%

10

j2=5%

Select one:

a.This bond is trading at a premium.

b.This bond is trading at par.

c.This bond is trading at a discount.

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