

A corporation issues a bond that generates the above cash flows.If the periods shown are 3 months,which of the following best describes that bond?
A) a 15-year bond with a notional value of $5000 and a coupon rate of 5% paid quarterly
B) a 15-year bond with a notional value of $5000 and a coupon rate of 1.25% paid annually
C) a 30-year bond with a notional value of $5000 and a coupon rate of 3.75% paid semi-annually
D) a 60-year bond with a notional value of $5000 and a coupon rate of 5% paid quarterly
E) a 30-year bond with a notional value of $5000 and a coupon rate of 2.5% paid semi-annually
Correct Answer:
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