A corporate bond makes payments of $9.67 every month for ten years with a final

Question

A corporate bond makes payments of $9.67 every month for ten years with a final payment of $2009.67. Which of the following best describes this bond?

Question 16 options:

1) a 10-year bond with a face value of $2000 and a coupon rate of 4.8% with monthly payments 2) a 10-year bond with a face value of $2000 and a coupon rate of 5.8% with monthly payments 3) a 10-year bond with a face value of $2009.67 and a coupon rate of 4.8% with monthly payments 4) a 10-year bond with a face value of $2009.67 and a coupon rate of 5.8% with monthly payments

Explanation / Answer

2) a 10-year bond with a face value of $2000 and a coupon rate of 5.8% with monthly payments is correct option.

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