Final answer:
An $1,000 bond with a coupon rate of 6 percent that pays interest semiannually and is priced at par will have a market price of $1,000 and interest payments in the amount of $30 each.
Step-by-step explanation:
An $1,000 bond with a coupon rate of 6 percent that pays interest semiannually and is priced at par will have a market price of $1,000 and interest payments in the amount of $30 each.
The coupon rate of 6 percent means that the bond pays interest of 6 percent of the bond's face value, which is $1,000. Since the interest is paid semiannually, there will be two interest payments per year.
Each interest payment will be $1,000 x 6% / 2 = $30.