Question

A corporate bond has a coupon rate of 10.2%, a yield to maturity of 11.8%, a face value of $1,000, and a market price of $948
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Answer #1

The answer is option B.

The coupon is always paid on the face value of bond.

Interest = Face value × coupon rate

= $1000 × 10.2%

= $ 102

So, the interest is $102.00

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