If a bond has a face interest rate of 6 percent, a face value of $20,000, and pays interest semiannually, each interest payment will amount to $1,200.

Name: If a bond has a face interest rate of 6 percent, a face value of $20,000, and pays interest semiannually, each interest payment will amount to $1,200.
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Quizplus · Accepted Answer

The semiannual interest payment is calculated as (6% / 2) * $20,000 = 3% * $20,000 = $600.

If a Bond Has a Face Interest Rate of 6