It is desired to expand a lamp factory and to finance the project bonds are issued...
It is desired to expand a lamp factory and to finance the project bonds are issued per year with a nominal value of $ 500 each, pays monthly interest of coupon 15.25% annual interest. If Mr. López invests in the purchase of 300 bonds, how much will he receive in total coupon payments per month? And how much per year?
Homework Answers
Total coupon payments per month;-
=500*(15.25%/12)*300
=1906.25
Total coupon payments per year;-
=500*(15.25%)*300
=22875
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