Question: Consider two bonds, each bond has a 6% coupon rate, each is trading with a 9% yield to maturity. Bond A has a maturity of

Consider two bonds, each bond has a 6% coupon rate, each is trading with a 9% yield to maturity. Bond A has a maturity of 10 years, Bond B has a maturity of 7 years.Which is the best statement of those below?

1) Bond A has a shorter duration than does Bond B

2) Bond A has a lower price volatility than does Bond B

3) Bond A is trading at a premium to face value, Bond B is trading at a premium to face value

4) All of the above

5) None of the above

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