Which of the following coupon bonds have the highest yield to maturity (YTM)? Notation: P = Current price %3D C = Annual coupon payment %3D F = Final value %! N = Term to maturity (in years) OP= $1,000 &C = $100 & F= $1,000, & N = 40 P = $1,100 & C = $100 & F= $1,000, & N = 40 OP- $1,100,000o & C = $100,000 &F= $1,000,000, & N = 5 P = $950,000 & C = $100,000 & F = $1.000,000, & N = 5 P = $1,000,000 & C = $100,000 & F = $1,000,000, & N = 00 %3D

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Which of the following coupon bonds have the highest yield to maturity
(YTM)?
Notation:
P Current price
%3!
C = Annual coupon payment
%3D
F = Final value
N = Term to maturity (in years)
O P= $1,000 &C = $100 & F= $1,000, & N = 40
P = $1,100 & C = $100 & F = $1,000, & N = 40
%3D
O P= $1,100,000 & C = $100,000 & F = $1,000,000, & N = 5
P= $950,000 & C = $100,000 & F= $1,000,000, & N = 5
P = $1,000,000 & C $100,000 & F = $1,000,000, &N = 00
Transcribed Image Text:Which of the following coupon bonds have the highest yield to maturity (YTM)? Notation: P Current price %3! C = Annual coupon payment %3D F = Final value N = Term to maturity (in years) O P= $1,000 &C = $100 & F= $1,000, & N = 40 P = $1,100 & C = $100 & F = $1,000, & N = 40 %3D O P= $1,100,000 & C = $100,000 & F = $1,000,000, & N = 5 P= $950,000 & C = $100,000 & F= $1,000,000, & N = 5 P = $1,000,000 & C $100,000 & F = $1,000,000, &N = 00
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