Interest rate on bonds is usually quoted as an annual rate, and paid:

Question

Quizplus · Accepted Answer

Interest rate on bonds is typically paid semi-annually. While the rate is quoted as an annual rate, the interest payments are spread out over the course of the year, with payments made every six months. Quarterly or monthly payments would be too frequent and would increase administrative costs for the issuer, while annual payments may be too infrequent for investors who require regular income.

Interest Rate on Bonds Is Usually Quoted as an Annual