If the coupon payment on a bond is $140 and the coupon rate is 5%,then what is the face value of the bond?

Name: If the coupon payment on a bond is $140 and the coupon rate is 5%,then what is the face value of the bond?
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Quizplus · Accepted Answer

The face value of the bond is $2,800 because the coupon payment is $140 and the coupon rate is 5%. This means that the bond pays $140 in interest each year, which is 5% of the face value of the bond. Therefore, the face value of the bond must be $2,800.

If the Coupon Payment on a Bond Is $140 and the Coupon