Question 3

A bond is a premium bond. B bond is a disount bond. Both bonds have a yield to maturity of 6%. Which bond should have the higher holding period return over the next year? A B they should have the same holding period return. not enough information to determine

Question 4

Bond A is a discount bond. Bond B is a premium bond. If yields remain constant, which bond's price should rise as it matures?

		A
		B
		prices of both A and B should rise as it matures
		not enough information to determine