A 10-year bond with a face value of 7500 was issued with an annual coupon rate...

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Question

business economics

Answer 1

Answer #1

ANSWER:

I = 5.25% per year or 5.25% / 12 per month

face value = $7500

Dividend amount = i * face value = 5.25% / 12 * 7500 = 0.004375 * 7500 = 32.81

so $32.81 is the dividend amount per month.

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Answer 2

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