Total income would you generate on an annual basis

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Reference no: EM13810258

Suppose you have own 50 Coupon Bonds A and 28 Zero Coupon Bonds B. The Coupon bonds have a YTM of 8.35% and CR of 7.19%, while the Zero Coupon Bonds have a YTM of 4.12%. The Coupon bonds have 16 years until maturity, while the Zero Coupons have 12 years until maturity. Both have face value of $1,000. Given this, how much in total income would you generate on an annual basis?

a. $4,749

b. $5,329

c. $4,197

d. $3,595

Reference no: EM13810258

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