Given the following bond quotations: Issuer coupon maturity price yield
Ontario 3.150 2022-Jun-02 99.00 3.28
Bombardier 7.350 2024-Dec-22 107.00 6.56
Which of the following statements is true?
A) The Bombardier bond appears to have a higher risk premium.
B) The Ontario bond has a 6.3 percent annual coupon rate.
C) The yields on these bonds illustrate the liquidity preference theory.
D) The Ontario bond is a better price.
Correct Answer:
Verified
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