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Determine the interest payment for the following three bonds: 2.5 percent coupon corporate bond (paid semi-annually), 3.15 percent coupon Treasury note, and a corporate zero

Determine the interest payment for the following three bonds: 2.5 percent coupon corporate bond (paid semi-annually), 3.15 percent coupon Treasury note, and a corporate zero coupon bond maturing in 10 years. (Assume a $1,000 par value.)

Multiple Choice

  • $2.50, $3.15, $0, respectively
  • $12.50, $15.75, $100, respectively
  • $12.50, $15.75, $0, respectively
  • $25.00, $31.50, $0, respectively

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