Question

if a $1,000 face value coupon bond has a coupon rate of 3.75 percent, then the coupon payment every year is

Answer 1

The coupon payment for a $1,000 face value coupon bond with a coupon rate of 3.75 percent is $37.50.

Step-by-step explanation:

The coupon payment for a bond is calculated by multiplying the coupon rate by the face value of the bond. In this case, the bond has a face value of $1,000 and a coupon rate of 3.75 percent. To calculate the coupon payment, we can use the formula: Coupon Payment = (Coupon Rate/100) * Face Value. Substituting the values, we get: Coupon Payment = (3.75/100) * $1,000 = $37.50.