Solved

A Corporation Issues a Bond That Generates the Above Cash

Question 20

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

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents