Briggs Corporate issued a 20 year, 8.25% semi-annual coupon bond. This bond has a face value...
Briggs Corporate issued a 20 year, 8.25% semi-annual coupon bond. This bond has a face value of $1,000 and currently sells in the market at the price of $928.69. Its YTM is 9.00%What coupon payment does this bond pay every 6 months?
(a)$39.469
(b)$45.000
(c)$20.625
(d)$41.250
(e)$41.791
Homework Answers
The coupon payment of every six months is computed as follows:
= Coupon rate / 2 x Face value (Since the payments are semi annual, hence divided by 2)
= 8.25% / 2 x $ 1,000
= $ 41.250
So, the correct answer is option d
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