Respuesta :
A bond has a coupon rate of 6 percent and it makes semiannual coupon payments. The dollar amount of coupon interest received every six months is $30.
Given,
The bond has an annual coupon rate of 6% paid semiannually means that it will pay (6% / 2) = 3% every 6 months.
Semiannual coupon payment = Semiannual coupon rate * Face value
The standard face value of a bond is $1000, therefore,
Semiannual coupon payment = 3% * 1000 = $30
A bond that pays coupons is referred to as a coupon paying bond while a bond which does not pay coupons is known as a Zero-coupon bond.
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