You purchase a $12,500 bond with a bond rate of 8% per year payable semiannually for...
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You purchase a $12,500 bond with a bond rate of 8% per year payable semiannually for 2 years. You pay $12,100 for the bond. Which statement is correct? Semiannual cash flows will be -$12,100, $500, $500, $500, $13,000, and the bond will earn less than 10 percent. Semiannual cash flows will be -$12,100, $500, $500, $500, $12,600, and the bond will earn more than 10 percent. Semiannual cash flows will be -$12,100, $500, $500, $500, $12,600, and the bond will earn less than 10 percent. Semiannual cash flows will be -$12,100, $500, $500, $500, $13,000, and the bond will earn more than 10 percent. You purchase a $12,500 bond with a bond rate of 8% per year payable semiannually for 2 years. You pay $12,100 for the bond. Which statement is correct? Semiannual cash flows will be -$12,100, $500, $500, $500, $13,000, and the bond will earn less than 10 percent. Semiannual cash flows will be -$12,100, $500, $500, $500, $12,600, and the bond will earn more than 10 percent. Semiannual cash flows will be -$12,100, $500, $500, $500, $12,600, and the bond will earn less than 10 percent. Semiannual cash flows will be -$12,100, $500, $500, $500, $13,000, and the bond will earn more than 10 percent.
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