Use the information for the question(s) below.
-The Sisyphean Company has a bond outstanding with a face value of $5000 that matures in 10 years. The bond certificate indicates that the stated coupon rate for this bond is 8.9% and that the coupon payments are to be made semiannually. How much will each semiannual coupon payment be?
A) $445.0
B) $222.5
C) $667.5
D) $890.0

Question

Use the information for the question(s) below. 
-The Sisyphean Company has a bond outstanding with a face value of $5000 that matures in 10 years. The bond certificate indicates that the stated coupon rate for this bond is 8.9% and that the coupon payments are to be made semiannually. How much will each semiannual coupon payment be?
A) $445.0 
B) $222.5 
C) $667.5 
D) $890.0

Quizplus · Accepted Answer

B) 11ea84dc_f569_468a_9a63_6be394ec6195_TB1316_00_TB1316_00 = (0.089 × 5000) / 2 = $222.5

Use the Information for the Question(s) Below