QUESTION $1$

Which of the following bonds is trading at par?$---$

"A bond with a $$2,000$ face value trading at $$1,987."$

"A bond with a $$1,000$ face value trading at $$999."$

"A bond with a $$1,000$ face value trading at $$1,000."$

"A bond with a $$2,000$ face value trading at $$2,012."$

QUESTION $2$

"A company releases a five$-$year bond with a face value of $$1000$ and coupons paid semiannually. If market interest rates imply a YTM of $7\%,$ which of the

following coupon rates will cause the bond to be issued at a discount?$---"$

$6\%.$

$7\%.$

$8\%.$

$10\%.$

QUESTION $3$

Which of the following bonds is trading at a premium? $---$

"A five$-$year bond with a $$2,000$ face value whose yield to maturity is $7\mathrm{.}2\%$ and coupon rate is $7\mathrm{.}0\%$ APR paid semiannually. $"$

"A ten$-$year bond with a $$4,000$ face value whose yield to maturity is $6\mathrm{.}0\%$ and coupon rate is $5\mathrm{.}9\%$ APR paid semiannually. $"$

$"$A $15-$year bond with a $$10,000$ face value whose yield to maturity is $8\mathrm{.}0\%$ and coupon rate is $7\mathrm{.}8\%$ APR paid semiannually. $"$

"A two$-$year bond with a $$50,000$ face value whose yield to maturity is $5\mathrm{.}2\%$ and coupon rate is $6\mathrm{.}2\%$ APR paid monthly. $"$