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You buy a 5-year $1000 par value bond, paying interest at j2 = 5%, for a price that allows you to yield j2 = 7%.
You buy a 5-year $1000 par value bond, paying interest at j2 = 5%, for a price that allows you to yield j2 = 7%. Which of the following is the correct price that you would pay if this bond was an accumulation bond (compound interest bond) and if it was a strip bond? O A. Accumulation Bond: $1101.96; Strip Bond: $708.92 B. Accumulation Bond: $907.48; Strip Bond: $781.20 C. Accumulation Bond: $1101.96; Strip Bond: $781.20 D. Accumulation Bond: $907.48; Strip Bond: $708.92
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