Interest Payments Determine the interest payment for the following three bonds: 4 percent coupon corporate bond (paid semi-annually),4.75 percent coupon Treasury note,and a corporate zero coupon bond maturing in 15 years.(Assume a $1,000 par value.)
A)$4.00, $4.75, $0, respectively
B)$20.00, $23.75, $0, respectively
C)$20.00, $23.75, $150, respectively
D)$40.00, $47.50, $0, respectively

Question

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The 4% coupon corporate bond pays $20.00 semi-annually (4% of $1,000 is $40 annually, divided by 2). The 4.75% Treasury note pays $23.75 annually (4.75% of $1,000). The zero coupon bond pays no interest until maturity.

Interest Payments Determine the Interest Payment for the Following Three