A 2-Year T-Note Has a Face Value of $1,000 and Pays

question 69

Multiple Choice

A 2-year T-Note has a face value of $1,000 and pays annual coupons of $75.The next coupon is due in one year.What is the correct price for the coupon bond today? Use the term structure of interest rates shown below to answer the question.

• A) $982
• B) $992
• C) $1,002
• D) $1,012
• E) $1,022

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Definitions:

Cultural Intelligence

The ability to relate to and work effectively across cultures.

Analyze

To examine something methodically and in detail, usually for purposes of explanation and interpretation.

Charisma

A compelling attractiveness or charm that can inspire devotion in others, often seen as a quality of effective leaders.

Emotional Intelligence

The aptitude for identifying, overseeing, and expressing personal emotions, in addition to managing relationships with care and empathy.