Builtrite has two bond issues outstanding(sold two separate groups of bonds over the years). One issue has a 7 year maturity and the other issue had a 12 year maturity. Both bonds are paying 4.25% annual interest. Investors only require a 3.75% return, which of the following statements is true? a) The 7 year bond issue is riskier than the 12 year bond issue
b) Both bond issues have the same amount of risk
c) The 7 year bond price will be selling closer to par value
d) The 12 year bond price will be selling closer to par value

C

Explanation:

Here, we want to select which of the given options in the question is true/correct.

From the question we can observe that the two bonds have required return less than coupon rate. Hence we can conclude that, both are premium bonds. The 7-years bond however. will have closer price to par value.

Bond prices will gradually decrease as we have a decrease in years to maturity. This means that the closer the year to maturity, the lesser the value of the bond price

the specific actions take by the fed. what the fed was attempting to do by taking these actions. the result of the actions taken by the fed

i think the answer is a. science center.