If a Five-Year Bond Paying Semiannual Interest Sells for $1,000

question 4

Multiple Choice

If a five-year bond paying semiannual interest sells for $1,000 and has a yield to maturity of 10%,what is the semiannual coupon payment?

• A) $10
• B) $50
• C) $75
• D) $100
• E) $120

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Definitions:

Wake-on-LAN

A networking standard that allows a computer to be turned on or awakened from sleep mode by a network message.

PXE

Preboot eXecution Environment, a technology that allows computers to boot up using software received through a network, without the need for storage devices.

NFC

Near Field Communication (NFC) is a short-range wireless connectivity technology allowing for secure communication between devices over a distance of a few centimeters.

Internet Explorer

A discontinued web browser developed by Microsoft, once the default browser for Windows, known for its role in the early web but replaced by Microsoft Edge.