Three different U.S. Treasury notes pay semi-annual coupons and mature in exactly one year; i.e., each pays the next coupon in six months and matures six months subsequently. The price of Bond A with a coupon rate of 2.0% per annum is $99.02 and the price of Bond C with a coupon rate of 7.0% per annum is $103.91. If Bond B has a coupon rate of 4.0% per annum, what is the price of Bond B? A. $99.12 B. $100.56 C. $100.98

Three different U.S. Treasury notes pay semi-annual coupons and mature in exactly one year; i.e., each pays the next coupon in six months and matures six months subsequently. The price of Bond A with a coupon rate of 2.0% per annum is $99.02 and the price of Bond C with a coupon rate of 7.0% per annum is $103.91. If Bond B has a coupon rate of 4.0% per annum, what is the price of Bond B? A. $99.12 B. $100.56 C. $100.98

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 9P

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