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Creative Solutions Inc. has issued 10minusyear ​$1,000 face​ value, 8% annual coupon​ bonds, with a yield to maturity of​ 9.0%. The annual interest payment for the bond is​ ________.
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Creative Solutions Inc. has issued 10minusyear ​$1,000 face​ value, 8% annual coupon​ bonds, with a yield to maturity of​ 9.0%. The annual interest payment for the bond is​ ________.

User BlueSun
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1 Answer

1 vote

Answer:

$80

Step-by-step explanation:

The interest payment that is reconized in the financial statement is always based on the coupon rate.

Interest = Face Value of the Bond * Coupon Rate

Annual Interest = $1000 * 8% = $80

User TheUturn
by
3.6k points
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