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All the securities below have annual payments. [Do not round interim calculations]   Security Rating Maturity (yrs) Face Value Coupon Price   T-Bill 1 $1,000 0% $982.33   T-Note 5 $1,000 2.40% $992.44   T-Bond 10 $1,000 3.25% $1,005.53   T-Bond 20 $1,000 3.90% $1,002.26   Corp Bond BBB 5 $1,000 3.80% $944.55   Corp Bond AA 10 $1,000 3.40% $968.12   Corp Bond A 20 $1,000 5.10% $982.35   What price would you pay for a 5-year, A bond with a coupon rate of 2.70%, a $1,000 Face Value and annual payments?   1. $958.32   2. $945.39   3. $1,001.33   4. $1,09.56   5. None of the above

All the securities below have annual payments. [Do not round interim calculations]   Security Rating Maturity (yrs) Face Value Coupon Price   T-Bill 1 $1,000 0% $982.33   T-Note 5 $1,000 2.40% $992.44   T-Bond 10 $1,000 3.25% $1,005.53   T-Bond 20 $1,000 3.90% $1,002.26   Corp Bond BBB 5 $1,000 3.80% $944.55   Corp Bond AA 10 $1,000 3.40% $968.12   Corp Bond A 20 $1,000 5.10% $982.35   What price would you pay for a 5-year, A bond with a coupon rate of 2.70%, a $1,000 Face Value and annual payments?   1. $958.32   2. $945.39   3. $1,001.33   4. $1,09.56   5. None of the above

Essentials Of Investments
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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All the securities below have annual payments. [Do not round interim calculations]

 

Security Rating Maturity (yrs) Face Value Coupon Price

 

T-Bill 1 $1,000 0% $982.33

 

T-Note 5 $1,000 2.40% $992.44

 

T-Bond 10 $1,000 3.25% $1,005.53

 

T-Bond 20 $1,000 3.90% $1,002.26

 

Corp Bond BBB 5 $1,000 3.80% $944.55

 

Corp Bond AA 10 $1,000 3.40% $968.12

 

Corp Bond A 20 $1,000 5.10% $982.35

 

What price would you pay for a 5-year, A bond with a coupon rate of 2.70%, a $1,000 Face Value and annual payments?

 

1. $958.32

 

2. $945.39

 

3. $1,001.33

 

4. $1,09.56

 

5. None of the above 

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