What Is the Price of a $100 000 Bond with 24

question 29

Multiple Choice

What is the price of a $100 000 bond with 24 months to maturity and 12% p.a.coupon? Assume that the four consecutive semi-annual yields are 4% p.a. ,5% p.a. ,7% p.a.and 8% p.a.respectively.

• A) \( \$ 105 \quad 344.12 \)
• B) \( \$ 109 \quad 380.90 \)
• C) \( \$ 110 \quad 487.02 \)
• D) \( \$ 111 \quad 356.77 \)

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