Question

Year 0 1 14 15 $960 $960 $960 $96 0 96 0$2000 dar A corporation issues a bond that generates the above cash flows. If the periods shown are 1 year, which of the following best describes that bond? O A. a 15-year bond with a notional value of $2,000 and a coupon rate of 4.8% paid quarterly O B. a 5-year bond with a notional value of $2,000 and a coupon rate of 2.400% paid semiannually OC. a 15-year bond with a notional value of $2,000 and a coupon rate of 4.8% paid annually OD. a 15-year bond with a notional value of $2,000 and a coupon rate of 1200% paid monthly

Answer 1

Option C

As there are 15 payments, each payment is 96
So this is a 15 year bond with a notional value of 2000 and coupon rate of 4.8% paid annually