Question

If the maturity date of a semi-annual coupon bond is February 20, 2039, on what date is the final coupon paid?

Answer 1

February 20, 2039

Step-by-step explanation:

the bonds pay a semiannual coupon, but the last coupon is paid along with the face value (or maturity) value of the bond. For example, if the bond pays a 6% coupon rate, on February 20, 2039 the investor will receive ($1,000 x 6% x 1/2) + $1,000 = $1,030. The exact date might change if the maturity date is a Saturday or Sunday, but it should be paid on the next business day.