Multiple Choice
Which of the following $1,000 face value bonds has a 10% yield, assuming semiannual coupon payments of 8%?
1) A 5 year maturity bond selling for $964.54
2) A 10 year maturity bond selling for $875.39
3) A 20 year maturity bond selling for $828.36
A) (1)
B) (2)
C) (3)
D) (2) and (3)
Correct Answer:
Verified
Correct Answer:
Verified
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