If a corporate bond with face value of $1,000 has an interest rate of eight percent paid once a year for a term of 30 years, what is the size of the annual coupon payment?

Question

Quizplus · Accepted Answer

The size of the annual coupon payment is calculated as multiply the face value of the bond by the annual interest rate. So, annual coupon payment = $1,000 x 8% = $80. Therefore, the correct answer is C.

If a Corporate Bond with Face Value of $1,000 Has