单选题 An investor is considering the purchase of Security X, which matures in ten years with a par value of $1000. During the first five years X has a 6% coupon with quarterly payments. During the remaining five years, X has an 8% coupon with quarterly payments. The face value is paid at maturity. A second 10-year security, Security Z, has a 6% semiannual coupon and is selling at par. Assuming that X has the same bond equivalent yield as Z, what is the price of Security X?

A、

A. $943.
B、

B. $1009.
C、

C. $1067.

【正确答案】 C

【答案解析】The bond equivalent yield rate on the par bond (Z) is 6% or a 3% semiannual rate. The equivalent quarterly rate, 1.031/2-1=0.014889. Security X makes 20 quarterly payments of.$15 and 20 quarterly payments of $ 20. We need to use the cash flow function as follows: CF0=0; CF1=15; F1=20; CF2=20; F2=19; CF3=1020; F3=1; I=1.4889; CPT→NPV= $1067.27. Note that CF3 contains the final quarterly payment of $20 along with the $1000 face value payment.