If a Corporate Bond with Face Value of $5,000 Has

question 184

Multiple Choice

If a corporate bond with face value of $5,000 has an interest rate of 4 percent paid once a year for a term of 30 years, what is the size of the coupon payment?

• A)$4
• B)$200
• C)$1,250
• D)$5,000

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Definitions:

HBr

Hydrobromic acid, a diatomic molecule consisting of hydrogen and bromine, often used in organic synthesis.

1-Bromopentane

An organobromine compound consisting of a five-carbon alkane with a bromine atom attached to the primary carbon.

Di-sec-Butyl Ether

An organic compound formed by the dehydration reaction between two sec-butyl alcohol molecules, resulting in an ether with a dialkyl structure.

Sec-Butanol

A secondary alcohol with the chemical formula C4H10O, where the hydroxyl group is connected to the second carbon in a butane chain.