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Use the following information to answer questions 20-23. A 3 year dual currency AAA rated bond (Euro-USD) pays a 7.5% annual coupon in Euros (on

Use the following information to answer questions 20-23. A 3 year dual currency AAA rated bond (Euro-USD) pays a 7.5% annual coupon in Euros (on a par value of a 1000 Euros). The principal repaid will be US $ 1250. The zero coupon yield curves for 1,2 and 3 year maturity AAA rated Euro denominated bonds and AAA rated US$ denominated bonds are given below. The current spot rate is $ 1.31/Euro.

1 year

2 year

3 year

Euro denominated

3.5 %

4.0 %

4.5 %

US $ denominated

2.5 %

3.0 %

3.5 %

20. How much would you be willing to pay today in USD for only the bonds coupon payments?

Group of answer choices

A. USD 207.53

B. USD 264.12

C. USD 271.86

D. USD 167.60

Question 211 pts

21. How much would you be willing to pay today in USD for the bonds principal payment?

Group of answer choices

USD 1127.43

USD 1247.34

USD 1164.41

USD 1250.00

Question 221 pts

22. How much would you be willing to pay today in USD for this bond (considering both coupons and principal payment)?

Group of answer choices

USD 1332.10

USD 1383.97

USD 1399.29

USD 1475.00

Question 231 pts

23. How much would you be willing to pay today in Euros for this bond (considering both coupons and principal payment)?

Group of answer choices

Euros 1124.43

Euros 1068.16

Euros 1056.47

Euros 1016.87

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