USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

-Refer to Exhibit 12.1. What annual dollar coupon amount will investors receive?
A) $4.75
B) $47.50
C) $4.808
D) $48.08
E) $62

Question

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
 
-Refer to Exhibit 12.1. What annual dollar coupon amount will investors receive?
A) $4.75 
B) $47.50 
C) $4.808 
D) $48.08 
E) $62

Quizplus · Accepted Answer

The annual dollar coupon amount is calculated by multiplying the bond's face value by the coupon rate. If the face value is $1,000 and the coupon rate is 4.75%, the annual coupon payment is $47.50.