Jowell4422 Jowell4422

03-07-2021
Business

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A 5-year treasury bond with a coupon rate of 8% (paid semiannually) has a face value of $1,000. What is the semiannual coupon payment

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Tundexi Tundexi

04-07-2021

Answer:

$40

Explanation:

Coupon payment = Face value * Coupon rate * 1/2

Coupon payment = $1,000 * 8% * 1/2

Coupon payment = $1,000 * 0.08 * 1/2

Coupon payment = $40

So, the semiannual coupon payment is $40.

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