A 10- Year Coupon Bond with Face Value of $500,000

question 43

Multiple Choice

A 10- year coupon bond with face value of $500,000 and a semi- annual coupon rate of 6% p.a. pays how much per half year in coupon payments?

• A) $30,000.
• B) $15,000.
• C) $1500.
• D) $60,000.

---

Definitions:

Formal Written Instrument

A legally binding document or contract clearly outlining the terms and conditions agreed upon by the parties involved.

Credit

The trust which allows one party to provide resources to another party wherein the second party does not reimburse the first party immediately but promises either to repay or return those resources (or other materials of equal value) at a later date.

Notes Receivable

Written promises for amounts to be received by a business, typically including interest, from individuals or other entities.

Bad Debt Expense

An expense reported on the income statement due to receivables that are not expected to be collected.