Question

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A 5-year bond with a face value of $1000 has a coupon rate of 6%, with...

A 5-year bond with a face value of $1000 has a coupon rate of 6%, with semiannual payments. What is the coupon payment for this bond per 6-month period?

A.

not enough information
B.

$60
C.

$30

Solutions

Expert Solution

C.$30.

Working;

coupon payment per 6 month period = face value * coupon rate * 6 months /12 months

=>$1000*6%*6/12

=>$30.

jeff jeffy answered 2 years ago
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