Kai buys a $5,000.00 bond maturing in 5 years with a 3.500% coupon. The bond is priced to yield 3.750% compounded bi-weekly. How much does he pay? O a. P = $5,775.32. O b. P = $5,133.62. O c. P = $5,725.96. O d. P = $4,936.17. P = $4,985.53. е.

Kai buys a $5,000.00 bond maturing in 5 years with a 3.500% coupon. The bond is priced to yield 3.750% compounded bi-weekly. How much does he pay? O a. P = $5,775.32. O b. P = $5,133.62. O c. P = $5,725.96. O d. P = $4,936.17. P = $4,985.53. е.

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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Question

Kai buys a $5,000.00 bond maturing in 5 years with a 3.500% coupon. The bond is priced to yield 3.750% compounded bi-weekly. How
much does he pay?
O a. P = $5,775.32.
O b. P = $5,133.62.
Ос.
P = $5,725.96.
O d. P = $4,936.17.
Oe.
P = $4,985.53.
Certainty e : Oc=1 (Unsure: <67%) OC=2 (Mid: >67%) Oc=3 (Quite sure: >80%)

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