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15-07-2020
Business

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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.

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Parrain Parrain

16-07-2020

Answer: $60

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

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