If a Bond Has a Face Value of $1,000 and the Bondholder

question 38

Multiple Choice

If a bond has a face value of $1,000 and the bondholder receives coupon payments of $27.50 semi-annually, the bond's coupon rate is:

• A) 2.75%
• B) 5.50%
• C) 27.5%
• D) a value that cannot be determined from the information provided.

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