A corporate $10,000 bond has a coupon rate of 8% per year, payable semiannually. The bond matures

Question:

A corporate $10,000 bond has a rate of 8% per year, payable semiannually. The bond matures 20 years from now. At an interest rate of 6% per year, compounded semiannually, the amount and frequency of the bond payments are:
(a) $600 every 6 months
(b) $800 every 6 months
(c) $300 every 6 months
(d) $400 every 6 months

Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...