Samuel owns a bond with a par value of $5000 and a coupon rate of 5%.How much will he receive in annual interest until the bond reaches maturity or he sells the bond to someone else?

Name: Samuel owns a bond with a par value of $5000 and a coupon rate of 5%.How much will he receive in annual interest until the bond reaches maturity or he sells the bond to someone else?
Brand: Quizplus
Rating: 4.9 (52 reviews)

Question

Quizplus · Accepted Answer

The annual interest is calculated by multiplying the par value of the bond ($5000) by the coupon rate (5%), which equals $250.

Samuel Owns a Bond with a Par Value of $5000