The ________ is calculated by multiplying the coupon rate times the par value of the bond.
A)present value
B)face value
C)coupon payment
D)maturity payment

Question

Quizplus · Accepted Answer

The coupon payment is the periodic interest payment that a bondholder receives by holding the bond. It is calculated by multiplying the coupon rate (the interest rate stated on the bond) with the par value (the face value) of the bond. Therefore, the correct answer is C. Present value refers to the current value of the bond's future cash flows, face value is the par value of the bond, and maturity payment refers to the final payment made when the bond matures.

The ________ Is Calculated by Multiplying the Coupon Rate Times