Homework Answers
There are 30 semi-annual periods. So, it is a 15 year bond. Eliminate options A and C
Coupon rate = (Coupon payment * 2)/Notional value
Coupon rate = (135 * 2)/5,000
Coupon rate = 0.054 = 5.4% paid semi-annually
So, the correct answer is option D
A 15-year bond with a notional value of $5,000 and a coupon rate of 5.4% paid semiannually
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