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Kayla is considering investing in a bond with a face value of $12,000 with a coupon rate of 12% payable on a monthly basis. If she can get a 2.5% return per quarter on her money, what are the monthly payments
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Kayla is considering investing in a bond with a face value of $12,000 with a coupon rate of 12% payable on a monthly basis. If she can get a 2.5% return per quarter on her money, what are the monthly payments that she can receive from the bond

User Christian Wuensche
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1 Answer

3 votes

Answer:

The answer is "$ 120"

Step-by-step explanation:

Given value:


\text{Monthly payment= Face value} * \frac{\text{Coupon rate}}{12}


= \$ 12,000 * (12 \%)/(12)\\\\= \$ 12,000 * (0.12)/(12)\\\\= \$ 1,000 * 0.12\\\\= \$ 120

User Aditya Mukherji
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