Two Bonds Have a Coupon Rate of 6

question 29

Multiple Choice

Two bonds have a coupon rate of 6.5 percent,semi-annual payments,face values of $1,000,and yields to maturity of 7.1 percent.Bond S matures in 6 years and bond L matures in 12 years.What is the difference in the current prices of these bonds?

• A)$15.26
• B)$16.19
• C)$17.40
• D)$18.38
• E)$19.02

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Definitions:

Secondary Consumers

Organisms that feed on primary consumers in an ecosystem; they are typically carnivores or omnivores.

Secondary Consumers

Organisms, typically animals, that obtain energy by consuming primary consumers, which are herbivores.

Radiant Energy

Energy that travels by waves or particles, particularly electromagnetic radiation such as light and heat.

Photosynthesis

A process used by plants and other organisms to convert light energy, usually from the sun, into chemical energy that can be later released to fuel the organism's activities.