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A fixed-income portfolio manager is using discount factors to price a sovereign bond. The bond is a coupon bond with the following cash flows:
3 months from today: USD 67,500
6 months from today: USD 67,500
9 months from today: USD 4,567,500
Based on the discount factors of the zero-coupon bonds, what is the present value of the cash flows from the sovereign coupon bond?
A
USD 3,728,209
B
USD 4,059,055
C
USD 4,349,780
D
USD 4,436,915