How much will each coupon payment be of a 30-year $10,000 bond with a 4.5% coupon rate and semiannual payments?

Name: How much will each coupon payment be of a 30-year $10,000 bond with a 4.5% coupon rate and semiannual payments?
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Quizplus · Accepted Answer

The coupon rate is 4.5%, which means the bond will pay $4.5 in interest for every $100 of face value. Since the face value is $10,000, the annual coupon payment will be $450. Since the bond makes semiannual payments, the coupon payment will be half of that amount or $225.

How Much Will Each Coupon Payment Be of a 30-Year