You purchase a 10000 bond with a bond rate of 6 per year, Ask an Expert

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You purchase a $10,000 bond with a bond rate of 6% per year payable semiannually for 2 years. You pay $9,600 for the bond. Which statement is correct?

A) Semiannual cashflow will be -$9,600, $300, $300, $300, and $9,900, and the bond will earn more than 10%.

B) Semiannual cashflow will be -$9,600, $300, $300, $300, and $9,900, and the bond will earn less than 10%.

C) Semiannual cashflow will be -$9,600, $300, $300, $300, and $10,300, and the bond will earn more than 10%.

D) Semiannual cashflow will be -$9,600, $300, $300, $300, and $10,300, and the bond will earn less than 10%.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91725762

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