Which of the following best shows the timeline for cash flows from a five-year bond with a face value of $1,000, a coupon rate of 5.9%, and semiannualpayments?.....О А. Рeriod124$59$59$5959$1,059О В. Рeriod129.10$59$59$59$59$1,059О С. Рeriod12310$29.5$29.5$29.5$29.5$29.5O D. Period12310$29.5$29.5$29.5$29.5 $1,029.5

coupon payments = semi annual rate * face value = 5.9%/2 * 1000 = 29.50 amount received at the end = coupon + face value = 29.5+1000 = 10.29.50 n = 5*2 = 10option D is the correct option

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Finance

Which of the following best shows the timeline for cash flows from a five-year bond with a face value of $1,000, a coupon rate of 5.9%, and semiannual payments? ..... O A. Period 1 2 4 $59 $59 $59 59 $1,059 О В. Рeriod 1 3 9. 10 $59 $59 $59 $59 $1,059 O C. Period 1 2 3 10 $29.5 $29.5 $29.5 $29.5 $29.5 O D. Period 1 9. 10 $29.5 $29.5 $29.5 $29.5 $1,029.5

Which of the following best shows the timeline for cash flows from a five-year bond with a face value of $1,000, a coupon rate of 5.9%, and semiannual payments? ..... O A. Period 1 2 4 $59 $59 $59 59 $1,059 О В. Рeriod 1 3 9. 10 $59 $59 $59 $59 $1,059 O C. Period 1 2 3 10 $29.5 $29.5 $29.5 $29.5 $29.5 O D. Period 1 9. 10 $29.5 $29.5 $29.5 $29.5 $1,029.5

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

Which of the following best shows the timeline for cash flows from a five-year bond with a face value of $1,000, a coupon rate of 5.9%, and semiannual
payments?
.....
О А. Рeriod
1
2
4
$59
$59
$59
59
$1,059
О В. Рeriod
1
2
9.
10
$59
$59
$59
$59
$1,059
О С. Рeriod
1
2
3
10
$29.5
$29.5
$29.5
$29.5
$29.5
O D. Period
1
2
3
10
$29.5
$29.5
$29.5
$29.5 $1,029.5

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