jay acquire is considering the purchase of a bullrite 1000 par6 5/8% coupon rate 5 year...
jay acquire is considering the purchase of a bullrite 1000 par6 5/8% coupon rate 5 year maturity bond which is selling for 975. What is the dollar amount of interest that his bond pays annually?
6.58
66.25
67.50
68.50
Homework Answers
Annual Interest = Coupon Rate * Par Value
Coupon Rate = 6 5/8% = 6.625%
Annual Interest = 6.625% * $1000
Annual interest = $66.25
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