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

Question

Quizplus · Accepted Answer

To calculate the annual interest, we need to multiply the par value ($5000) by the coupon rate (5%), which gives us $250. Therefore, Samuel will receive $250 in annual interest until the bond reaches maturity or he sells the bond to someone else.

Samuel Owns a Bond with a Par Value of $5000