Face-value securities has the highest yield to maturity

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1. Which of the following $1,000 face-value securities has the highest yield to maturity? Explain your answer.

A) A 5 percent coupon bond selling for $1,000

B) A 10 percent coupon bond selling for $1,000

C) A 12 percent coupon bond selling for $1,000

D) A 12 percent coupon bond selling for $1,100

2. Which of the following $1,000 face-value securities has the lowest yield to maturity? Explain your answer

A) A 5 percent coupon bond selling for $1,000

B) A 10 percent coupon bond selling for $1,000

C) A 15 percent coupon bond selling for $1,000

D) A 15 percent coupon bond selling for $900

Reference no: EM13690192

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