What Is the Coupon Payment of a 15-Year $10,000 Bond

question 59

Multiple Choice

What is the coupon payment of a 15-year $10,000 bond with a 9% coupon rate with semiannual payments?

• A) $150.00
• B) $450
• C) $900.00
• D) $1800.00

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Definitions:

Accrue

The accumulation or increase of something over time, especially payments or benefits that are recognized before cash is exchanged.

Endowment Contributions

Gifts made to institutions, typically non-profit organizations or universities, intended to be invested to support the organization’s long-term financial health.

Restricted Fund Method

An accounting approach used for reporting where resources are segregated based on restrictions or designations imposed by donors or regulators.

Deferral Method

An accounting practice where certain revenues and expenses are deferred to future accounting periods, rather than being recognized immediately.