Question: 1. What is the difference between present time values of Bond A and Bond B per $1000 of par (face) value at a market annual

1. What is the difference between present time values of Bond A and Bond B per $1000 of par (face) value at a market annual discount rate of 6%?

Bond

Price

Coupon Rate

Time-to-Maturity

A

1001.56

4%

2 years

B

1000.00

6%

2 years

C

999.99

5%

2 years

2. Which bond offers the lowest yield-to-maturity?

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