Question

Calculate the annual coupon payment for the bonds listed below Issuer Face Value Coupon Rate Rating...

Calculate the annual coupon payment for the bonds listed below

Issuer

Face Value

Coupon Rate

Rating

Quoted Price

Years until Maturity

Sinking Fund

Call Period

ABC Energy

$1,000.00

5%

AAA

$703.10

20

Yes

3 Years

ABC Energy

$1,000.00

0%

AAA

$208.30

20

Yes

Na

TransPower

$1,000.00

10%

AA

$1092.00

20

Yes

5 Years

Telco Utilities

$1,000.00

11%

AA

$1206.40

30

No

5 Years

0 0
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Answer #1

annual coupon payment = face value * coupon rate:

ABC energy ($1000*5%) $50
ABC energy ($1000*0%) $0
Transpower ($1000*10%) $100
Telco Utilities ($1000*11%) $110
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