Multiple Choice
The prices of a one-year 4% coupon bond,a two-year 5% coupon bond,and a three-year 6% coupon bond are $101,$100 and $99,respectively.Coupons are paid annually.What is the price of a bond that pays $37 each year?
A) $99.00
B) $100.08
C) $101.21
D) $111.43
Correct Answer:
Verified
Correct Answer:
Verified
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