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Jane has been offered a 15-year bond issued by Barone, Inc., at a price of $943.22. The bond has a coupon rate of 9 percent
Jane has been offered a 15-year bond issued by Barone, Inc., at a price of $943.22. The bond has a coupon rate of 9 percent and pays the coupon semiannually. Similar bonds in the market will yield 10 percent today. What are the cash flows (coupon payments) from this bond?
A) $90 coupon payment annually and 943.22 at maturity |
B) $90 coupon payment annually and $1000 at maturity |
C) $45 coupon payment semi-annually and 943.22 at maturity |
D) $45 coupon payment semi-annually and $1000 at maturity |
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