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For the next four questions consider the following bonds, all with $1,000 par value: co I. A 9.5% I year bond with interest paid annually,

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For the next four questions consider the following bonds, all with $1,000 par value: co I. A 9.5% I year bond with interest paid annually, currently priced at $977.5 111 A 6% coupon rate, 18-year bond with interest paid annually, quoted at S540 IV. A zero-coupon, 10-year bond currently priced at $250 year bond, paying $45 coupons every 6 months, currently priced to yield 8% 1) Which one has the highest current yield? A.I B. I D. IV 2) Which one has the highest yield to maturity? A.I IV D. Which one is trading at the largest premium? 3) A. C.I D. IV

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