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Basic Question 7 of 15
The cash flows promised to the owner of a $250,000 par value bond with five years to maturity, paying an 8% coupon rate in semi-annual payments, are ______.
B. 10 semi-annual payments of $20,000 plus one final payment of $150,000
C. 10 semi-annual payments of $10,000 plus one final payment of $250,000
A. five annual payments of $80 plus one final payment of $1,000
B. 10 semi-annual payments of $20,000 plus one final payment of $150,000
C. 10 semi-annual payments of $10,000 plus one final payment of $250,000
User Contributed Comments 5
| User | Comment |
|---|---|
| jmcgui10 | Isn't the last payment $260,000? 10,000 + 250,000? |
| NavdeepS | The curriculum text states it slightly differently (but pretty similar) as 9 semiannual payments of 10k plus one final payment of 260K. Since thats not an option here, the correct answer is the most appropriate choice one. |
| Skrills | it is essentially the exact same thing! |
| 2014 | Rite navdeep |
| To-be-CFA | You can solve this question without actually solving it as C is the only option having $250,000 as one final payment. |
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Learning Outcome Statements
describe the features of a fixed-income security
CFA® 2024 Level I Curriculum, Volume 4, Module 1.