Question

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

Answer 1

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.