Question: If current market yields are 12% p.a. compounded semi-annually, which of the following bonds will have the highest price? a) Coupon rate of 15% p.a.,

If current market yields are 12% p.a. compounded semi-annually, which of the following bonds will have the highest price? a) Coupon rate of 15% p.a., annual coupon payments, and 10 years to maturity b) Coupon rate of 12% p.a., semi-annual coupon payments, and 7 years to maturity c) Coupon rate of 10% p.a., semi-annual coupon payments, and 7 years to maturity d) Coupon rate of 12% p.a., semi-annual coupon payments, and 5 years to maturity e) Coupon rate of 15% p.a., annual coupon payments, and 3 years to maturity

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