Question

If the finance manager issues $1,000 bonds a coupon rate of 3.0%, how much interest will the bondholder receive each year, and how often?

Answer 1

The bondholder will receive $30 in interest each year. This is calculated by multiplying the bond's face value of $1000 by the coupon rate of 3.0% (1000 * 0.03 = 30). The bondholder will receive this interest annually.

Step-by-step explanation:

The bondholder will receive $30 in interest each year.

This is calculated by multiplying the bond's face value of $1000 by the coupon rate of 3.0% (1000 * 0.03 = 30).

The bondholder will receive this interest annually.