For each of the following pairs of Government of Canada Bonds, identify which will have the higher price as a percentage of the face value.

a$.$ A three$-$year zero$-$coupon bond or a five$-$year zero$-$coupon bond?

b$.$ A three$-$year zero$-$coupon bond or a three$-$year $4\%$ coupon bond?

c$.$ A two$-$year $5\%$ coupon bond or a two$-$year $6\%$ coupon bond?

a$.$ Which will have the higher price $($as a percentage of the face value$),$ a three$-$year zero$-$coupon bond or a five$-$year zero$-$coupon bond?

A$.$ A $3-$year, because the future value is received sooner, the present value is higher.

B$.$ A $3-$year, because the present value is received sooner, the future value is higher.

C$.$ A $5-$year, because the future value is received later, the present value is higher.

D$.$ A $5-$year, because the present value is received sooner, the future value is higher.

b$.$ Which will have the higher price $($as a percentage of the face value$),$ a three$-$year zero$-$coupon bond or a three$-$year $4\%$ coupon bond?

A$.$ The zero$-$coupon bond, because the zero$-$coupon bond pays interest payments.

B$.$ The zero$-$coupon bond, because a pure discount bond pays higher interest payments than a $4\%$ coupon bond.

C$.$ The $4\%$ coupon bond, because the $4\%$ coupon bond pays interest payments; whereas the zero$-$coupon bond is a pure discount bond.

D$.$ Since they are both have a $3-$year maturity, they are equal in price.