How much will the coupon payments be of a 30-year $10,000 bond with a 4.5% coupon rate and semiannual payments? | Homework.Study.com (2024)

Business Finance Coupon (bond)

Question:

How much will the coupon payments be of a 30-year $10,000 bond with a 4.5% coupon rate and semiannual payments?

Bonds:

Bonds are securities that offer fixed payments over the bond's life along with the par value redemption at maturity. Bonds are issued with a stated interest rate called the coupon rate.

Answer and Explanation:1

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The value of coupon payments will be $225.

Explanation:

The following equation helps determine the coupon value:

  • Coupon payment per period = Face...

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Coupon Rate Definition, Formula & Examples

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Chapter 11/ Lesson 11

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Learn about coupon rate. Discover the difference between coupon rate vs. interest rate and identify how to calculate coupon rate using the coupon rate formula.

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How much will the coupon payments be of a 30-year $10,000 bond with a 4.5% coupon rate and semiannual payments? | Homework.Study.com (2024)

FAQs

How much will the coupon payments be of a 30-year $10,000 bond with a 4.5% coupon rate and semiannual payments? | Homework.Study.com? ›

Answer and Explanation:

How much will the coupon payments be of a 30 year $10,000 bond with a 4.5% coupon rate and semi-annual payments? ›

Annual Coupon=10000*4.5%=450 2. Semi-Annual Coupon=10000*4.5%/2=225 3.

How do you calculate the coupon payment for a coupon bond? ›

If you know the face value of the bond and its coupon rate, you can calculate the annual coupon payment by multiplying the coupon rate times the bond's face value. For example, if the coupon rate is 8% and the bond's face value is $1,000, then the annual coupon payment is . 08 * 1000 or $80.

What is the coupon payment of a 25 year $1000 bond with a 4.5% coupon rate with quarterly payments? ›

The coupon payment of a 25-year $1000 bond with a 4.5% coupon rate with quarterly payments is $11.25 per quarter or every three months.

What is the yield to maturity of a five year $5000 bond with a 4.5% coupon rate? ›

Applying the formula, the yield to maturity on the bond is: 5000 ∗ 4.5 % + ( 5000 − 1876 ) / 5 ( 5000 + 4876 ) / 2 = 5.06 %

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