What amount of interest is paid per year on a 20-year, 7% coupon corporate bond with a $1,000 face value and semiannual interest payments?

Name: What amount of interest is paid per year on a 20-year, 7% coupon corporate bond with a $1,000 face value and semiannual interest payments?
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Question

Quizplus · Accepted Answer

The annual interest payment is calculated by multiplying the coupon rate (7%) by the face value ($1,000), which equals $70.

What Amount of Interest Is Paid Per Year on a 20-Year