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question 14

Multiple Choice

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A corporation issues a bond that generates the above cash flows. If the periods are of 3-month intervals, which of the following best describes that bond?

• A) a 15-year bond with a notional value of $5000 and a coupon rate of 4.6% paid quarterly
• B) a 15-year bond with a notional value of $5000 and a coupon rate of 1.2% paid annually
• C) a 30-year bond with a notional value of $5000 and a coupon rate of 3.5% paid semiannually
• D) a 60-year bond with a notional value of $5000 and a coupon rate of 4.6% paid quarterly

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Definitions:

Roof

The structure that covers or forms the top of a building or vehicle to provide protection from the weather.

Slope

A measure of the steepness or incline of a line, defined as the ratio of the vertical change to the horizontal change between two points on the line.

Graph

A graphical representation of data, functions, or equations, typically plotted on a coordinate system.

Slope

A measure of the steepness or incline of a line, often represented as the ratio of the change in y over the change in x between two points on the line.