Determine the Interest Payment for the Following Three Bonds: 4

question 4

Multiple Choice

Determine the interest payment for the following three bonds: 4 percent coupon corporate bond (paid semiannually) , 4.75 percent coupon Treasury note, and a corporate zero-coupon bond maturing in 15 years. (Assume a $1,000 par value.)

• A)$4.00, $4.75, $0, respectively
• B)$20.00, $23.75, $0, respectively
• C)$20.00, $23.75, $150, respectively
• D)$40.00, $47.50, $0, respectively

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Definitions:

Rotational Slide

A type of landslide involving the rotational movement of rock or soil along a curved surface, typically caused by the undercutting of a slope or the saturation of soil.

Debris Avalanche

A high-velocity flow of soil, sediment, and rock, commonly from the collapse of a steep mountainside.

Permafrost

Permanently frozen ground that occurs in high latitude regions of the Earth, consisting of soil, gravel, and sand usually bound together by ice.

Rock Fall

A mass-wasting process whereby large rocks and smaller pieces of bedrock detach and fall onto the ground.