Question: Please give me full solutions to problems below. Answers are given. 5. Which of the following coupon bond carries the largest amount of interest rate

Please give me full solutions to problems below. Answers are given.

5. Which of the following coupon bond carries the largest amount of interest rate risk?

  1. a. 3 year coupon bond
  2. b. 12 year coupon bond
  3. c. 2 year coupon bond
  4. d. 15 years coupon bond Correct Answer

6. The yield to maturity for a bond selling at a premium is:

  1. a. Above the coupon rate
  2. b. Below the coupon rate Correct Answer
  3. c. Equal to the coupon rate
  4. d. None of the above are correct

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