What is the amount and frequency of dividend payments on a bond that has a face...

Question

Question

What is the amount and frequency of dividend payments on a bond that has a face value of $10,000 and a coupon rate of 8% per

business economics

Answer 1

Answer #1

Answer:

Amount of semi-annual coupon = Face value x Annual coupon rate /Number of payments per year = $10,000 x 8% x (1/12) = $66.67

For a monthly the Coupon payment is made twice a year, so frequency = 12.

Answer 2

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