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vazorg [7]
3 years ago
12

You purchase 4,000 bonds with a par value of $1,000 for $978 each. The bonds have a coupon rate of 7.7 percent paid semiannually

and mature in 10 years. How much will you receive on the next coupon date? How much will you receive when the bonds mature?
Business
1 answer:
drek231 [11]3 years ago
7 0

Answer:

The amount to be received onthe coupon date is $154000.

The amount to be received at bonds maturity is $4154000.

Explanation:

amount received on the next coupon date = 4000*$1000*7.7%*6/12

                                                                       = $154000

amount to receive when the bonds mature = face value + interest

= 4000*$1000 + $154000

= $4,000,000 + $154000

= $4154000

Therefore, the amount to be received onthe coupon date is      $154000 and the amount to be received at bonds maturity is $4154000.

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