A bond has a yield to maturity of 7 percent. The bond matures in 10 years, has a face value of $1,000, and pays semiannual interest payments. What is the amount of each semi-annual coupon payment if the current price of the bond is par?   Group of answer choices $30.00 $35.00 $60.00 $70.00 The answer cannot be determined with the information provided.

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
Section: Chapter Questions
Problem 17P: Bond Value as Maturity Approaches An investor has two bonds in his portfolio. Each bond matures in 4...
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A bond has a yield to maturity of 7 percent. The bond matures in 10 years, has a face value of $1,000, and pays semiannual interest payments. What is the amount of each semi-annual coupon payment if the current price of the bond is par?
 
Group of answer choices
$30.00
$35.00
$60.00
$70.00
The answer cannot be determined with the information provided.
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