The par value of a bond is $1,000, the coupon rate is 6 percent, and the current interest rate is 7 percent. What is the coupon payment?

Name: The par value of a bond is $1,000, the coupon rate is 6 percent, and the current interest rate is 7 percent. What is the coupon payment?
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Question

Quizplus · Accepted Answer

The coupon payment is calculated by multiplying the par value of the bond ($1,000) by the coupon rate (6 percent). Therefore, the coupon payment is $1,000 * 0.06 = $60.

The Par Value of a Bond Is $1,000, the Coupon