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pshichka [43]
3 years ago
8

A bond with a coupon rate of 6 percent that pays interest semiannually and is priced at par will have a market price of _____ an

d interest payments in the amount of _____ each.
Business
1 answer:
ipn [44]3 years ago
3 0

Answer:

$1,000 and $30

Explanation:

We assume the market price or face value be $1,000

And the given coupon rate is 6% which is paid on semi annually basis

So, the interest payment is

= Market price or face value × coupon rate ÷ 2

= $1,000 × 6% ÷ 2

= $30

In the semi annual basis, the rate is half and the time is doubles and the same is applied above

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Answer:

FALSE

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8 0
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stich3 [128]

Answer:

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