Interest Payments Determine the interest payment for the following three bonds: 5½ percent coupon corporate bond (paid semi-annually), 6.45 percent coupon Treasury note, and a corporate zero coupon bond maturing in 10 years. (Assume a $1,000 par value.)

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The interest payment for the 5½ percent coupon corporate bond is $27.50 (5.5% of $1,000 divided by 2 for semi-annual payments). The 6.45 percent coupon Treasury note pays $32.25 annually (6.45% of $1,000). The zero coupon bond pays no interest until maturity.

Interest Payments Determine the Interest Payment for the Following Three