If a corporate bond with face value of $8,000 has an interest rate of 4 percent paid once a year for a term of 30 years,what is the size of the coupon payment?

Name: If a corporate bond with face value of $8,000 has an interest rate of 4 percent paid once a year for a term of 30 years,what is the size of the coupon payment?
Brand: Quizplus
Rating: 4.8 (56 reviews)

Question

Quizplus · Accepted Answer

The coupon payment is calculated as the face value of the bond ($8,000) multiplied by the interest rate (4 percent or 0.04), which equals $320.

If a Corporate Bond with Face Value of $8,000 Has