A) $ 10.00
| Annual coupon payment | = | Par Value | * | Coupon rate | ||
| = | $ 1,000.00 | * | 4% | |||
| = | $ 40.00 | |||||
| Quarterly coupon payment | = | Annual coupon payment | * | 1/4 | ||
| = | $ 40.00 | * | 1/4 | |||
| = | $ 10.00 | |||||
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