What Is the Current Price of a Financial Security That

question 42

Multiple Choice

What is the current price of a financial security that pays a fixed coupon of 10.2% per annum per $100 face value,compounding half-yearly and maturing in four years,when current yields in the market are 8.6% per annum?

• A) $103.9575
• B) $70.3185
• C) $103.887
• D) $132.8295

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Definitions:

Mg

An abbreviation for magnesium, a chemical element vital for human health, involved in over 300 biochemical reactions in the body.

Scored Tablets

Medication in pill form with a line (or score) that allows for easy and accurate splitting.

Liter

A metric unit of volume equal to one cubic decimeter or 1,000 cubic centimeters, commonly used to measure liquids.

Basic Unit

The smallest, fundamental component or building block of a system or structure.