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Which of the following bonds is trading at a premium? O a five-year bond with a $5,000 face value whose yield to maturity is 5.0%
Which of the following bonds is trading at a premium? O a five-year bond with a $5,000 face value whose yield to maturity is 5.0% and coupon rate is 5.2% APR paid semiannually O a seven-year zero coupon bond whose yield to maturity is 9.0% and the face value is $5,000 O a ten-year bond with a $1,000 face value whose yield to maturity is 6.0% and coupon rate is 5.9% APR paid semiannually O a two-year bond with a 550,000 face value whose yield to maturity is 5.2% and coupon rate is 5.2% APR paid annually O a 15-year bond with a $10,000 face value whose yield to maturity is 8.0% and coupon rate is 7.8% APR paid semiannually Question 9 1 pts A newly issued, ten-year, zero-coupon bond with a yield to maturity of 3.80% has a face value of $1000. An investor purchases the bond when it is initially traded, and then sells it four years later. What is the annual rate of return of this investment, assuming the yield to maturity does not change? O 4.0% 0 3.2% O 2.8% O 3.8% O 2.4%
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