Interest Payments Determine the interest payment for the following three bonds: 2½ percent coupon corporate bond (paid semi-annually), 3.15 percent coupon Treasury note, and a corporate zero coupon bond maturing in 10 years. (Assume a $1,000 par value.)

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The 2½ percent coupon corporate bond pays $25 annually, or $12.50 semi-annually. The 3.15 percent coupon Treasury note pays $31.50 annually, or $15.75 semi-annually. The zero coupon bond pays no interest until maturity.

Interest Payments Determine the Interest Payment for the Following Three