A bond has a coupon rate of 6 percent and the bond makes semiannual coupon payments. The dollar amount of coupon interest received every six months is

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The coupon rate is 6%, which means the bond pays 6% of the face value as coupon interest every year. Since the bond makes semiannual coupon payments, the coupon interest received every six months would be half of the annual coupon payment, which is (6%/2) x face value = 3% x face value. Therefore, if the face value of the bond is $1,000, the dollar amount of coupon interest received every six months would be $30.

A Bond Has a Coupon Rate of 6 Percent and the Bond