Question: Question 4 (1 point) A 12-year, $100 par value bond with 10% annual coupons (with respect to the par value), payable semiannually, is redeemable for


Question 4 (1 point) A 12-year, $100 par value bond with 10% annual coupons (with respect to the par value), payable semiannually, is redeemable for $120. The annual effective yield on the bond is 6%. Calculate the amount of premium amortized in the 5th coupon payment. a) 0.81 b) 0.87 c) 0.69 d) 1.38 e) 1.55 Question 3 (1 point) Larry deposits $100 at the beginning of every other year starting at time 0 and makes 15 such deposits. The account is able to earn 4% annual effective interest. Calculate the accumulated value of these payments at the end of 30 years. a) 2973.60 Ob) 2749.26 c) 2859.23 d) 2488.75 e) 2002.36
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