If a bond has a face interest rate of 6 percent,a face value of $40,000,and pays interest semi-annually,each interest payment will amount to $2,400.

Name: If a bond has a face interest rate of 6 percent,a face value of $40,000,and pays interest semi-annually,each interest payment will amount to $2,400.
Brand: Quizplus
Rating: 4.8 (28 reviews)

Question

Quizplus · Accepted Answer

The semi-annual interest payment is calculated as (6% / 2) * $40,000 = $1,200, not $2,400.

If a Bond Has a Face Interest Rate of 6