Use the information to answer the question(s)below.
-Shown above is information from FINRA regarding one of Caterpillar Financial Services' bonds.How much would the holder of such a bond earn each coupon payment for each $100 in face value if coupons are paid annually?
A)$1.38
B)$3.95
C)$4.00
D)$4.36
E)$5.17

Question

Use the information to answer the question(s)below. 
-Shown above is information from FINRA regarding one of Caterpillar Financial Services' bonds.How much would the holder of such a bond earn each coupon payment for each $100 in face value if coupons are paid annually?
A)$1.38 
B)$3.95 
C)$4.00 
D)$4.36 
E)$5.17

Quizplus · Accepted Answer

The coupon payment for a bond is calculated by multiplying the coupon rate by the face value of the bond. If the bond has a coupon rate of 4.00%, then for each $100 in face value, the holder would earn $4.00 annually.

Use the Information to Answer the Question(s)below