Final answer:
The coupon payment of a $1000 bond with a 12% coupon rate and quarterly payments is $30 per quarter.
Step-by-step explanation:
The question asks to calculate the coupon payment of a bond with a face value of $1000, a coupon rate of 12%, and quarterly payments. To calculate the coupon payment, we first find out the annual coupon payment by multiplying the face value by the coupon rate. Since the bond pays quarterly, we then divide this value by 4 to find the payment per quarter.
Annual coupon payment = $1000 × 12% = $120
Coupon payment per quarter = $120 ÷ 4 = $30
Therefore, the coupon payment for the bond per quarter is $30.