Use the following bond quotes to answer this question:

-The Alpha Industrial bonds pay an annual interest payment equal to 5.875 percent of:
A) $999.90.
B) $1,000.00.
C) $1,000.13.
D) $1,033.54.
E) $1,034.07.

Question

Use the following bond quotes to answer this question:
 
-The Alpha Industrial bonds pay an annual interest payment equal to 5.875 percent of:
A) $999.90. 
B) $1,000.00. 
C) $1,000.13. 
D) $1,033.54. 
E) $1,034.07.

Quizplus · Accepted Answer

Bonds typically pay interest based on their face value, which is usually $1,000.

Use the Following Bond Quotes to Answer This Question