How much will the coupon payments be of a 15-year $ 5000 bond with a 6.5% coupon rate and semiannual payments?

Question

Question

Answer 1

Answer #1

Face Value of Bond = F = $5000

Semiannual Coupon Rate = 6.5%/2 = 3.25%

Hence, Coupon Payments = Coupon Rate * Face Value = 3.25% of $5000 = 0.0325*5000 = $162.5

Answer 2

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