Investors who own a bond with a par value of $1000 and a coupon rate of 7.5 percent receive $75 in interest each year until the bond reaches maturity.

Name: Investors who own a bond with a par value of $1000 and a coupon rate of 7.5 percent receive $75 in interest each year until the bond reaches maturity.
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Question

Quizplus · Accepted Answer

This is true as the coupon rate of the bond is 7.5 percent of the par value ($1000), which results in an annual interest payment of $75 to the bondholder until the bond reaches maturity.

Investors Who Own a Bond with a Par Value of $1000