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Consider a 20-year bond with a face value of $1,000 that has a coupon rate of 5.2%, with semiannual payments. a. What is the coupon
Consider a 20-year bond with a face value of $1,000 that has a coupon rate of 5.2%, 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 19 20 Cash Flows $26.00 $26.00 $26.00 $1,026.00 O B. Period 39 40 + Cash Flows $26.00 $26.00 $26.00 $1,000 O C. Period 39 40 1 Cash Flows $26.00 $26.00 $26.00 $1,026.00 OD. Period 19 20 Cash Flows $26.00 26.00 $26.00 $26.00 $1,000
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