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Question 14

Multiple Choice

  +---------+---------+---------+----- . . . -------+---------+   A corporation issues a bond that generates the above cash flows. If the periods are of 3-month intervals, which of the following best describes that bond? A)  a 15-year bond with a notional value of $5000 and a coupon rate of 4.6% paid quarterly B)  a 15-year bond with a notional value of $5000 and a coupon rate of 1.2% paid annually C)  a 30-year bond with a notional value of $5000 and a coupon rate of 3.5% paid semiannually D)  a 60-year bond with a notional value of $5000 and a coupon rate of 4.6% paid quarterly +---------+---------+---------+----- . . . -------+---------+
  +---------+---------+---------+----- . . . -------+---------+   A corporation issues a bond that generates the above cash flows. If the periods are of 3-month intervals, which of the following best describes that bond? A)  a 15-year bond with a notional value of $5000 and a coupon rate of 4.6% paid quarterly B)  a 15-year bond with a notional value of $5000 and a coupon rate of 1.2% paid annually C)  a 30-year bond with a notional value of $5000 and a coupon rate of 3.5% paid semiannually D)  a 60-year bond with a notional value of $5000 and a coupon rate of 4.6% paid quarterly A corporation issues a bond that generates the above cash flows. If the periods are of 3-month intervals, which of the following best describes that bond?


A) a 15-year bond with a notional value of $5000 and a coupon rate of 4.6% paid quarterly
B) a 15-year bond with a notional value of $5000 and a coupon rate of 1.2% paid annually
C) a 30-year bond with a notional value of $5000 and a coupon rate of 3.5% paid semiannually
D) a 60-year bond with a notional value of $5000 and a coupon rate of 4.6% paid quarterly

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