A coupon bond has the following characteristics: Purchase Price3D 9800$ Annual Bond Rate= 7% Maturity= 2 years Face Value= 10000$ Period of Payment3 Semi-annual What will the final earnings related to the acquisition of this coupon bond? A. 300$ B. 1600$ C. 11200$ D. 14000$

A coupon bond has the following characteristics: Purchase Price3D 9800$ Annual Bond Rate= 7% Maturity= 2 years Face Value= 10000$ Period of Payment3 Semi-annual What will the final earnings related to the acquisition of this coupon bond? A. 300$ B. 1600$ C. 11200$ D. 14000$

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter9: The Basic Tools Of Finance

Section: Chapter Questions

Problem 3CQQ

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Question

A coupon bond has the following characteristics:
Purchase Price%3D 9800$
Annual Bond Rate= 796
Maturity= 2 years
Face Value= 10000$
Period of Payment3 Semi-annual
What will the final earnings related to the acquisition of this coupon bond?
A. 300$
B. 1600$
C. 11200$
D. 14000$

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