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QUESTION 8 Which of the following figures depicts the correct calculation for the price of a bond that matures in 2 years, makes semiannual coupon
QUESTION 8 Which of the following figures depicts the correct calculation for the price of a bond that matures in 2 years, makes semiannual coupon payments at a rate of 12 percent, and a YTM of 10 percent? FIGURE A: $50 $50 $50 $50 $1,000 (1.061+ (1.06)2+ (1.06) 37 (1.06)** (1.06) FIGURE B: $60 (1.10) 1 $60 $60 $60 (1.102 (1.10) 3* (1.10)+ $1,000 (1.10) 4 FIGURE C: $120 $120 (1.05)1* (1.05)2 $120 $120 $1,000 (1.05) 3* (1.05) * " (1.05) FIGURE D: $60 $60 $60 $60 $1,000 (1.05)1* (1.05)2+ (1.05)3+ (1.05) + (1.05)* Figure A Figure B Figure Figure D
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