The Alfa Co. has a 6% coupon bond outstanding that pays annual interest. Calculate the annual interest payment on a $1,000 face value bond. Group of answer choices.

Question

asked Dec 17, 2021 38.4k views

1 Answer

Tuomas Pelkonen · Answer 1 · 2021-12-22T15:12:37+0000

Answer: $60

Step-by-step explanation:

The Annual Interest payment is also known as the Coupon payment.

The Issuers of the bond pay this to the Holders in periods until the bond matures.

Annual Interest Payment = Face value of bond * Coupon rate

= 1,000 * 6%

= $60