Answered: If a $1,000 par value bond pays a 4%…

If a $1,000 par value bond pays a 4% coupon each year, paid semi-annually, how much would each semiannual payment be? A. $50 B. $25 C. $40 D. $20

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 13Q: A company issued bonds with a $100,000 face value, a 5-year term, a stated rate of 6%, and a market...

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Question

If a $1,000 par value bond pays a 4% coupon
each year, paid semi-annually, how much
would each semiannual payment be?
A. $50
B. $25
C. $40
D. $20

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