Raeo Corp. bonds trade at 100 today. The bonds pay semiannual interest on January 1 and July

Question:

Raeo Corp. bonds trade at 100 today. The bonds pay semiannual interest on January 1 and July 1. The coupon on the bonds is 7 percent. How much will you pay for a Raeo bond if today is?

a. April 1?

b. September 1?

c. July 1?

d. August 15?

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...