For a corporate bond with a face value of $1,000 and a stated interest rate of 6 percent, the owner would receive
A) $60 every six months.
B) $60 every month.
C) $30 every six months.
D) $30 every month.
E) $60 between the date of purchase and the maturity date.

Question

Quizplus · Accepted Answer

Corporate bonds with a stated interest rate typically pay interest semi-annually. Therefore, for a bond with a face value of $1,000 and a 6 percent annual interest rate, the owner would receive 6% of $1,000 = $60 per year, divided into two payments of $30 every six months.

For a Corporate Bond with a Face Value of $1,000