Answered

Welcome to Westonci.ca, your one-stop destination for finding answers to all your questions. Join our expert community now! Join our platform to get reliable answers to your questions from a knowledgeable community of experts. Experience the ease of finding precise answers to your questions from a knowledgeable community of experts.

Determine the interest payment for the following three bonds: 5.5 percent coupon corporate bond (paid semi-annually), 6.45 percent coupon Treasury note, and a corporate zero coupon bond maturing in 10 years. (Assume a $1,000 par value.)a. $27.50, $32.25, $0, respectivelyb. $55.00, $64.50, $0, respectivelyc. $5.50, $6.45, $0, respectivelyd. $27.50, $32.25, $100, respectively

Sagot :

tutorconsortium112

Par value ranges from $27.50 to $32.25 and 0 to $0.A debt security that doesn't pay interest is called a zero-coupon bond.

A corporate zero-coupon bond: what is it?

  • A debt security that doesn't pay interest is called a zero-coupon bond. Zero-coupon bonds offer full face value (par) gains at maturity and trade at significant discounts. An investor's return is calculated as the difference between a zero-coupon bond's purchase price and par value.
  • The Long-term, the the the gtghtghtgtreg gtg gt In order to maximize your profit from any given rate shift, zero coupon bonds are your best option if you want to wager on interest rates moving in a specific direction.

To learn more about Zero-coupon bonds refer to:

https://brainly.com/question/13120202

#SPJ4

Thanks for using our platform. We're always here to provide accurate and up-to-date answers to all your queries. Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. Get the answers you need at Westonci.ca. Stay informed with our latest expert advice.