If a bond has a face value of $10,000, a 6% coupon interest rate and a 4% market interest rate, then the semi-annual interest payment will be
A)$600.
B)$400.
C)$200.
D)$300.

Name: If a bond has a face value of $10,000, a 6% coupon interest rate and a 4% market interest rate, then the semi-annual interest payment will be A)$600. B)$400. C)$200. D)$300.
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Question

Quizplus · Accepted Answer

The bond's annual coupon payment is 6% of $10,000, which is $600. Since interest is paid semi-annually, each payment is $300 ($600/2).

If a Bond Has a Face Value of $10,000, a 6