A five-year treasury bond with a coupon rate of 8% has a face value of $1,000.What is the semiannual interest payment?

Question

Quizplus · Accepted Answer

The semiannual interest payment is calculated as follows: 
Coupon rate = 8%
Face value = $1,000
Semiannual interest payment = (Coupon rate x Face value)/2
Solving for the semiannual interest payment, we get:
Semiannual interest payment = (8% x $1,000)/2 = $40. 
Therefore, the correct answer is choice B) $40.

A Five-Year Treasury Bond with a Coupon Rate of 8