The current price of bond paying semiannual coupons

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Reference no: EM131882272

1. In calculating the current price of a bond paying semiannual coupons, one needs to

use double the number of years for the number of payments made.

use the semiannual coupon.

use the semiannual rate as the discount rate.

All of the above need to be done.

2. Martha is going to receive $6,000 in two years from Tom. She will receive an additional $4,000 in three years from Tom. She earns 7.15% on her investments. How much is this money from Tom worth to Martha today?

A) $7,893.46

B) $8,477.47

C) $8,891.74

D) $9,225.97

E) $9,251.5

Reference no: EM131882272

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