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Eva8 [605]
3 years ago
5

Consider a 10-year bond with a face value of $1000 that has a coupon rate of 5.5%, with semiannual payments. a. What is the coup

on payment for this bond
Business
1 answer:
katovenus [111]3 years ago
4 0

Answer:

Coupon= $27.5

Explanation:

Giving the following information:

Face value= $1,000

Coupon= semiannual payments

Coupon rate= 0.055/2= 0.0275

<u>To calculate the semiannual payment, we need to use the following formula:</u>

Coupon= face value*coupon rate

Coupon= 1,000*0.0275

Coupon= $27.5

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