A corporate bond makes payments of $96.70 semi-annually for ten years with a final payment of $2096.70. Which of the following best describes this bond? a. a 10-year bond with a face value of $2096.70 and a coupon rate of 9.7% with semi-annual payments b. a 10-year bond with a face value of $2096.70 and a coupon rate of 9.2% with semi-annual payments c. a 10-year bond with a face value of $2000 and a coupon rate of 9.2% with semi-annual payments d. a 10-year bond with a face value of $2000 and a coupon rate of 9.7% with semi-annual payments
A corporate bond makes payments of $96.70 semi-annually for ten years with a final payment of $2096.70. Which of the following best describes this bond? a. a 10-year bond with a face value of $2096.70 and a coupon rate of 9.7% with semi-annual payments b. a 10-year bond with a face value of $2096.70 and a coupon rate of 9.2% with semi-annual payments c. a 10-year bond with a face value of $2000 and a coupon rate of 9.2% with semi-annual payments d. a 10-year bond with a face value of $2000 and a coupon rate of 9.7% with semi-annual payments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A corporate bond makes payments of $96.70 semi-annually for ten years with a final payment of $2096.70. Which of the following best describes this bond?
a.
a 10-year bond with a face value of $2096.70 and a coupon rate of 9.7% with semi-annual payments
b.
a 10-year bond with a face value of $2096.70 and a coupon rate of 9.2% with semi-annual payments
c.
a 10-year bond with a face value of $2000 and a coupon rate of 9.2% with semi-annual payments
d.
a 10-year bond with a face value of $2000 and a coupon rate of 9.7% with semi-annual payments
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