You purchase 3,000 bonds with a par value of $1,000 for $940 each. The bonds have a

Question:

You purchase 3,000 bonds with a of $1,000 for $940 each. The bonds have a rate of 8.4 percent paid semiannually, and mature in 10 years. How much will you receive on the next date? How much will you receive when the bonds mature?

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... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...