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Question 8 (4 points)
Stephen bought a bond with a face value of $8000 and a coupon rate of 6.75%. The
bond will mature in 15 years.
How much interest will he receive semiannually?
$270
$324
O $360
O $540

Respuesta :

opudodennis

Answer:

$270

Step-by-step explanation:

-The coupon amount is calculated as:

[tex]Coupon=Coupon\ Rate \times Face \ Value[/tex]

-Given the face value is $8,000 and coupon rate is 6.75%, the semi-annual coupon amount is calculated as:

[tex]Coupon=Coupon\ Rate \times Face \ Value\\\\=0.0675\times 8000\times \frac{1}{2}\\\\=270[/tex]

Hence, the semi-annual coupon amount is $270

Answer: 270

Step-by-step explanation: