The cash payment each period is calculated as the carrying value times the market rate.The cash payment each period is calculated as the face value times the stated interest rate.

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The cash payment each period for a bond is calculated as the face value of the bond multiplied by the stated interest rate. The carrying value, which is the market value of the bond at a given point in time, is used to determine gains or losses on the sale of the bond or for accounting purposes, but it does not impact the cash payments made for each period.

The Cash Payment Each Period Is Calculated as the Carrying