Consider an 20-Year Bond with a Coupon Rate of 8

Multiple Choice

Consider an 20-year bond with a coupon rate of 8% and a par value of $1,000. The cash flow for this bond is ________ every six months for the first 39 semi-annual periods and then ________ for the last (or 40th) six-month period.

A) $1,040; $40
B) $40; $1,040
C) $80; $1,080
D) $80; $1,000