PlexiCo has issued new bonds to fund the construction of a synthetic glass factory. The bonds currently trade for $800 with a face value at maturity of $1,000. If the bonds' coupon rate is 5% and the bonds mature in 10 years, how much money should investors expect when the bond issues a coupon payment every 6 months?
A) $20.
B) $25.
C) $40.
D) $50.
Correct Answer:
Verified
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