question 20 (1 point) if a $5000 coupon bond has a coupon rate of 13 percent, then the coupon payment every…

question 20 (1 point) if a $5000 coupon bond has a coupon rate of 13 percent, then the coupon payment every year is ________. $130 $1300 $650 $13

question 20 (1 point) if a $5000 coupon bond has a coupon rate of 13 percent, then the coupon payment every year is ________. $130 $1300 $650 $13

Answer

Explanation:

Step1: Recall coupon - payment formula

The formula for the annual coupon payment of a bond is $Coupon\ Payment = Face\ Value\times Coupon\ Rate$.

Step2: Substitute given values

The face value of the bond is $F = 5000$ and the coupon rate is $r=0.13$. So, $Coupon\ Payment=5000\times0.13$.

Step3: Calculate the result

$5000\times0.13 = 650$.

Answer:

C. $650$