Which of the following $1,000 face valuesecurities has the highest yield to maturity?
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
Suppose you are holding a 5 percent couponbond maturing in one year with a yield to maturity of 15 percent. If theinterest rate on one-year bonds rises from 15percent to 20 percent over the course of the year, what is the yearly return onthe bond you are holding?
A) 5 percent
B) 10 percent
C) 15 percent
D) 20 percent
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