You own thirteen 7.0 percent coupon bonds with a total maturity value of $13,000. How much will you receive every six months as an interest payment?
A)$213.50
B)$375.00
C)$455.00
D)$540.00
E)$750.00

Question

Quizplus · Accepted Answer

To calculate the interest payment, we need to follow these steps:
1. Calculate the total annual interest payment: 
Total annual interest payment = Coupon rate * Total maturity value 
= 0.07 * $13,000 
= $910

2. Divide the total annual interest payment by 2 to get the semi-annual interest payment: 
Semi-annual interest payment = Total annual interest payment / 2 
= $910 / 2 
= $455

Therefore, the answer is C. You will receive $455 every six months as an interest payment.

You Own Thirteen 7