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The Sisyphean Company has a bond outstanding with a face value of $1 000 that reaches maturity in 15 years. The bond certificate indicates that the stated coupon rate for this bond is 8% and that the coupon payments are to be made semi-annually.
-How much will each semi-annual coupon payment be?

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Quizplus · Accepted Answer

The semi-annual coupon payment is calculated by taking the annual coupon rate (8% of $1,000 = $80) and dividing it by 2, since payments are made semi-annually. Thus, each payment is $40.

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