Which of the Following Is Correct for a Bond Priced

question 104

Multiple Choice

Which of the following is correct for a bond priced at $1,100 that has 10 years remaining until maturity,and a 10% coupon,with semiannual payments?

• A) Each payment of interest equals $50.
• B) Each payment of interest equals $55.
• C) Each payment of interest equals $100.
• D) Each payment of interest equals $110.