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Consider a 10-year bond with a face value of $1,000 that has a coupon rate of 5.5%, with semiannual payments. a. What is the coupon
Consider a 10-year bond with a face value of $1,000 that has a coupon rate of 5.5%, with semiannual payments. a. What is the coupon payment for this bond? b. Draw the cash flows for the bond on a timeline. a. What is the coupon payment for this bond? The coupon payment for this bond is $ (Round to the nearest cent.) b. Draw the cash flows for the bond on a timeline. Select the timeline below that shows the correct cash flows for this bond. (Select the best choice below.) O A. Period 0 1 2 9 10 Cash Flows $27.50 $27.50 $27.50 $1,000 B. Period 19 20 2 + $27.50 Cash Flows $27.50 $27.50 $1,000 OC. Period 0 1 20 2 + $27.50 19 + $27.50 Cash Flows $27.50 $1,027.50 OD. Period 1 2 N 9 10 Cash Flows $27.50 $27.50 $27.50 $1,027.50
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