A corporation issues a bond that generates the above cash flows. If the periods are of 3-month intervals, which of the following best describes that bond?
0 1 2 3 59 60
+-----+-----+-----+--- . . . -----+-----+
$57.5 $57.5 $57.5 $57.5 $5057.5
A) a 15-year bond with a notional value of $5000 and a coupon rate of 4.6% paid quarterly
B) a 15-year bond with a notional value of $5000 and a coupon rate of 1.2% paid annually
C) a 30-year bond with a notional value of $5000 and a coupon rate of 3.5% paid semiannually
D) a 60-year bond with a notional value of $5000 and a coupon rate of 4.6% paid quarterly
Answer: A
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