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QUESTION 6 The following financial information is provided regarding a bond: Par value = $1,000 Coupon...

QUESTION 6

  1. The following financial information is provided regarding a bond:

Par value = $1,000

Coupon rate = 9.5%

Current price = 116.13

Compute for the amount of semiannual coupon payments.

a.

$55.16

b.

$47.50

c.

$95.00
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Answer #1

b.$47.50.

semi annual coupon payments = $1,000*9.5%*6 months / 12 months.

=>$1,000*9.5%* 6 months / 12 monnths.

=>$47.50

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