A bond has a face value of $1,000 and a coupon rate of 3.25%. What is your annual interest payment if you own 12 of these bonds?

Question

Quizplus · Accepted Answer

The annual interest payment per bond is calculated as follows: 
Coupon rate x Face value = Annual interest payment 
3.25% x $1,000 = $32.50 
Therefore, the annual interest payment for 12 bonds is: 
$32.50 x 12 = $390. 
So, the correct answer is (C).

A Bond Has a Face Value of $1,000 and a Coupon