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Mary just purchased a bond which pays $60 a year in interest. What is this $60 called?a. Couponb. face valuec. discountd. call premiume. yield

User GotDibbs
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Answer:

The correct answer is letter "A": Coupon.

Step-by-step explanation:

Coupon bonds represent the interest rate of a bond. Typically the coupon is paid semiannually. It is only called coupon, shorted for Coupon Percentage Rate. The coupons were issued in physical paper forms: attached to the bond there were coupons that have to be removed from the bond and redeemed with the issuer in order to receive the interest payment. However, due to the digitalization of documents of our century, coupons are every time rarer.

User Sgdva
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