Question

Determine the amount of the semi-annual coupon for a bond with a face value of ₱ 300,000 that pays 10%, payable semi-annually for its coupons.

Answer 1

Copuon= $15,000

Explanation:

Giving the following information:

Face value= $300,000

Coupon rate= 10%

First, we need to determine the semiannual coupon rate:

Semiannual coupon rate= 0.1/2= 0.05

Now, the coupon using the following formula:

Copuon= face value*coupon rate

Copuon= 300,000*0.05

Copuon= $15,000