Interest Payments Determine the interest payment for the following three bonds: 2.5 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.)
A)$2.50, $3.15, $0, respectively
B)$12.50, $15.75, $0, respectively
C)$12.50, $15.75, $100, respectively
D)$25.00, $31.50, $0, respectively

Question

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The corporate bond pays $12.50 semi-annually (2.5% of $1,000 divided by 2), the Treasury note pays $15.75 annually (3.15% of $1,000), and the zero coupon bond pays no interest until maturity.

Interest Payments Determine the Interest Payment for the Following Three