The price of a bond with an 6% coupon rate paid semi-annually, a par value of $1,000, and fifteen years to maturity is the present value of
A) 15 payments of $30 at 6 month intervals plus $1,000 received at the end of the fifteenth year.
B) 15 payments of $60 at 6 month intervals plus $1,000 received at the end of the fifteenth year.
C) 30 payments of $30 at 6 month intervals plus $1,000 received at the end of the fifteenth year.
D) 30 payments of $60 at 1 year intervals plus $1,000 received at the end of the 30th year.
Answer: C
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