How to Calculate Annual Coupon Payment for a Bond with a 13% Coupon Rate

If a $5,000 coupon bond has a coupon rate of 13 percent, then the coupon payment every year isA) $650.B) $1,300.C) $130.D) $13.E) None of the above.

A) $650

The coupon rate of 13% means that the bond pays 13% of its face value in coupon payments each year.

To find the annual coupon payment:
Annual coupon payment = Coupon rate x Face value of bond
Annual coupon payment = 0.13 x $5,000
Annual coupon payment = $650

Therefore, the correct answer is A) $650.

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How to Calculate Annual Coupon Payment for a Bond with a 13% Coupon Rate

If a $5,000 coupon bond has a coupon rate of 13 percent, then the coupon payment every year isA) $650.B) $1,300.C) $130.D) $13.E) None of the above.

A) $650

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