Year 1 10 $245.0 $245.0 $245.0 $245.0 $245.0 + $5,000 A corporation issues a bond that generates the above cash flows. If the periods shown are 1 year, which of the following best describes that bond? O A. a 10-year bond with a notional value of $5,000 and a coupon rate of 4.9% paid quarterly. B. a 10-year bond with a notional value of $5,000 and a coupon rate of 4.9% paid annually. C. a 10-year bond with a notional value of $5,000 and a coupon rate of 1.225% paid semiannually. O D. a 3-year bond with a notional value of $5,000 and a coupon rate of 2.450% paid monthly.
Year 1 10 $245.0 $245.0 $245.0 $245.0 $245.0 + $5,000 A corporation issues a bond that generates the above cash flows. If the periods shown are 1 year, which of the following best describes that bond? O A. a 10-year bond with a notional value of $5,000 and a coupon rate of 4.9% paid quarterly. B. a 10-year bond with a notional value of $5,000 and a coupon rate of 4.9% paid annually. C. a 10-year bond with a notional value of $5,000 and a coupon rate of 1.225% paid semiannually. O D. a 3-year bond with a notional value of $5,000 and a coupon rate of 2.450% paid monthly.
Chapter2: The Domestic And International Financial Marketplace
Section: Chapter Questions
Problem 5P
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