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Short multiple choice questions, help please. 6 Yield Rate j2 = 10% Determine whether bond #3 below is trading at a premium, at par, or

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6 Yield Rate j2 = 10% Determine whether bond #3 below is trading at a premium, at par, or at a discount? Bond No. Face Value Redemption Coupon Rate Years to Redemption 1. $1000 At Par j2 = 8% 10 2. $5000 At Par j2 = 12% 25 3. $2000 At Par j2 = 6.5% 5 4. $1000 At 105 j2 = 5% 10 j2 = 9% j2 = 6.5% j2 = 5% Select one: O a. This bond is trading at a discount. O b. This bond is trading at a premium. O c. This bond is trading at par. 8 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. $1000 At Par j2 = 8% 10 j2 = 10% 2. S5000 At Par 12 = 12% 25 12 = 9% 3. S2000 At Par j2 = 6.5% 5 12 = 6.5% 4. $1000 At 105 12 = 5% 10 j2 = 5% Select one: O a. This bond is trading at a premium. O b. This bond is trading at a discount. O c. This bond is trading at par

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