Question
If you buy a 5 year coupon bond that has a coupon rate of 5% and a face value of $1,000. What will your payments
If you buy a 5 year coupon bond that has a coupon rate of 5% and a face value of $1,000. What will your payments be?
A. 5 years of payments paid semi-annually. Each payment will be $50. At the end of 5 years you will receive the $1,000.
B. 5 years of payments paid semi-annually. Each payment will be $25. At the end of 5 years you will receive the $1,000 .
C. 5 years of payments paid semi-annually. Each payment will be $50. At the end of 5 years you will have to pay the $1,000 .
D. 5 years of payments paid semi-annually. Each payment will be $25. At the end of 5 years you will have to pay the $1,000 .
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