Answer:
C)$140
Explanation:
To find how much Sal would receive semiannually, we first need to find how much he gets with his coupon.
Bond Price = $1000
Rate = 7% or 0.07
Total = Bond Price x Rate
Total = $1000 x 0.07
Total = $70
Now since we know that a semiannual payment means 2 payments in a year, we simply multiply the total by 2 to find the semiannual payment.
Overall = $70 x 2
Overall = $140
This means that Sal will receive a total of $140 per year for the next 10 years.