For each of the following pairs of Treasury securities (each with $1000 par value), identify which will

Question:

For each of the following pairs of Treasury securities (each with $1000 par value), identify which will have the higher price:
a. A three-year zero-coupon bond or a five-year zero bond?
b. A three-year zero-coupon bond or a three-year 4% bond?
c. A two-year 5% bond or a two-year 6% bond?

Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a...