A Bond Has a Par Value of $1,000, a Current

question 7

Multiple Choice

A bond has a par value of $1,000, a current yield of 6.25 percent, and semiannual interest payments.The bond quote is 100.8.What is the amount of each coupon payment?

• A)$63.00
• B)$31.50
• C)$37.50
• D)$62.50
• E)$31.25