Year 0 $96.0 $96.0 $96.0 14 $96.0 15 $96.0+$2,000 A corporation issues a bond that generates the above cash flows. If the periods shown are 1 year, which of the following best describes that bond? O A. a 15-year bond with a notional value of $2,000 and a coupon rate of 1.200% paid monthly. OB. a 15-year bond with a notional value of $2,000 and a coupon rate of 4.8% paid semiannually. OC. a 15-year bond with a notional value of $2,000 and a coupon rate of 4.8% paid annually. OD. a 5-year bond with a notional value of $2,000 and a coupon rate of 2.400% paid quarterly.
Year 0 $96.0 $96.0 $96.0 14 $96.0 15 $96.0+$2,000 A corporation issues a bond that generates the above cash flows. If the periods shown are 1 year, which of the following best describes that bond? O A. a 15-year bond with a notional value of $2,000 and a coupon rate of 1.200% paid monthly. OB. a 15-year bond with a notional value of $2,000 and a coupon rate of 4.8% paid semiannually. OC. a 15-year bond with a notional value of $2,000 and a coupon rate of 4.8% paid annually. OD. a 5-year bond with a notional value of $2,000 and a coupon rate of 2.400% paid quarterly.
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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Transcribed Image Text:Year
0
1
2
$96.0
3
14
$96.0
$96.0+$2,000
A corporation issues a bond that generates the above cash flows. If the periods shown are 1 year, which of the following best describes that bond?
$96.0
15
$96.0
OA. a 15-year bond with a notional value of $2,000 and a coupon rate of 1.200% paid monthly.
OB. a 15-year bond with a notional value of $2,000 and a coupon rate of 4.8% paid semiannually.
OC. a 15-year bond with a notional value of $2,000 and a coupon rate of 4.8% paid annually.
OD. a 5-year bond with a notional value of $2,000 and a coupon rate of 2.400% paid quarterly.
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