If you paid $9600 for a bond with par value of $10 000 and a 5 percent coupon rate,the semi-annual payment would be $250.

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The coupon rate of 5% on a par value of $10 000 means that the annual coupon payment would be $500 (5% x $10 000). Since it is a semi-annual payment, each payment would be half of that, which is $250. Therefore, if you paid $9600 for the bond, you would receive semi-annual payments of $250, which is lower than the annual coupon payment of $500.

If You Paid $9600 for a Bond with Par Value