Which of the Following Best Shows the Timeline for Cash

question 87

Multiple Choice

Which of the following best shows the timeline for cash flows from a five-year bond with a face
value of $2,000, a coupon rate of 4.2%, and semiannual payments?

• A) \[\begin{array} { l llllll }
• 0 & 1 & 2 & 3 && 9 & 10 \\
• + \cdots &+ \ldots &+ \ldots &+ \cdots & \ldots & \ldots + \ldots &+\\
• &\$42&\$42&\$42&&\$42&\$2,042
• \end{array}\]
• B) \[\begin{array} { l llllll }
• 0 & 1 & 2 & 3 && 9 & 10 \\
• + \cdots &+ \ldots &+ \ldots &+ \cdots & \ldots & \ldots + \ldots &+\\
• &\$17.50&\$17.50&\$17.50&&\$17.50&\$2,017.50
• \end{array}\]
• C) \[\begin{array} { l llllll }
• 0 & 1 & 2 & 3 && 9 & 10 \\
• + \cdots &+ \ldots &+ \ldots &+ \cdots & \ldots & \ldots + \ldots &+\\
• &\$48&\$48&\$48&&\$48&\$48
• \end{array}\]
• D) \[\begin{array} { l lllll }
• 0 & 1 & 2 & 3 & 4 & 5 \\
• +----&+----&+----&+----&+----&+\\
• &\$84&\$84&\$84&\$84&\$2,084
• \end{array}\]

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Definitions:

Permanent Magnets

Magnets that do not require an external force to maintain their magnetic properties.

Field

In the context of electromagnetism, it refers to the region around a charged particle or object within which a force would be exerted on other charges or magnetic materials.

Man-Made

Something made or constructed by human beings rather than occurring naturally in the environment.

Permanent Magnets

Materials that maintain a persistent magnetic field without the need for continuous energy input.