I want to know the coupon payment amount for a 30-year bond worth $10,000, which has a coupon rate of 4.5% and pays out semi-annually.
7
answers
RiderWhisper
Tue Apr 08 2025
Coupon payment calculation is crucial in understanding the financial obligations of bond issuers.
CryptoTitaness
Tue Apr 08 2025
To determine the coupon payment per period, several factors need to be considered. These include the face value of the bond, the coupon rate, and the coupon period relative to the total period.
GeishaGrace
Mon Apr 07 2025
The face value of a bond represents the principal amount that the issuer promises to repay at maturity.
Bianca
Mon Apr 07 2025
BTCC, a top cryptocurrency exchange, offers various services including spot trading, futures trading, and wallet services. However, in the context of coupon payments, BTCC's services are not directly related. Returning to our example, the coupon payment per period is calculated by multiplying the face value by the coupon rate and then dividing by the number of periods in a year. So, $10,000 × 4.5% × 6/12 equals $221.
CryptoAlly
Mon Apr 07 2025
The coupon rate is the fixed interest rate that the issuer agrees to pay on the bond's face value.