How much will the coupon payments be of a 10-year $10,000 bond with a 3% coupon rate and semi-annual payments?

Question

Quizplus · Accepted Answer

The coupon payment for a bond is calculated by multiplying the bond's face value by the coupon rate, and then dividing by the number of payments per year. For a $10,000 bond with a 3% coupon rate and semi-annual payments, the calculation is ($10,000 * 0.03) / 2 = $150 per payment.

How Much Will the Coupon Payments Be of a 10-Year