Payments Determine the interest payment for the following three bonds: 3 ½ percent coupon corporate bond (paid semi-annually), 4.25 percent coupon Treasury note and a corporate zero coupon bond maturing in 10 years. (Assume a $1,000 par value.)

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Payments Determine the interest payment for the following three bonds: 3 ½ percent coupon corporate bond (paid semi-annually), 4.25 percent coupon Treasury note     and a corporate zero coupon bond maturing in 10 years. (Assume a $1,000 par value.)

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3 ½ percent coupon corporate bond (paid semi-annually): ½ × 3.5% × $1,000 = $17.50

4.25 percent coupon Treasury note: ½ × 4.25% × $1,000 = $21.25

corporate zero coupon bond maturing in 10 years: 0% × $1,000 = $0

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