Use the Zero-Coupon Bond Prices Given in the Following Table

question 4

Multiple Choice

Use the zero-coupon bond prices given in the following table to answer the questions that follow.
-Consider a three-year fixed rate coupon bond with principal of $10 million dollars and paying a coupon of 2 percent per year,paid yearly.What is the value of the bond when it is issued?

• A) $9,448,000
• B) $9,552,000
• C) $10,000,000
• D) $10,448,000
• E) $10,552,000

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