Determine the Semi-Annual Interest Payment for the Following Three Bonds

question 8

Multiple Choice

Determine the semi-annual interest payment for the following three bonds: 5.5 percent coupon corporate bond, 6.45 percent coupon Treasury note, and a corporate zero-coupon bond maturing in 10 years. (Assume a $1,000 par value.)

• A) $5.50, $6.45, $0, respectively
• B) $27.50, $32.25, $0, respectively
• C) $27.50, $32.25, $100, respectively
• D) $55.00, $64.50, $0, respectively

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Definitions:

Stock Price

The cost of purchasing a single share of a company's stock, determined by the demand and supply in the stock market.

Apex Resources

A term potentially referring to a company, project, or materials designated as top or highest quality within a specific domain or sector.

Trade Discount

A reduction in the list price granted by a seller to a buyer, often based on the volume of goods purchased or to maintain a business relationship.

Net Cost

The overall expense involved in a purchase or investment after subtracting any discounts, rebates, or other financial incentives.