How much will the coupon payments be of a 20-year $500 bond with an 8% coupon rate and quarterly payments? | Homework.Study.com (2024)

Business Finance Coupon (bond)

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How much will the coupon payments be of a 20-year $500 bond with an 8% coupon rate and quarterly payments?

Issuing Bonds:

Bonds can be issued at a price different from their face value if the stated coupon rate is not the same as the market rate on similar bonds. Bonds are considered fixed-income securities identical to the preferred stock.

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Coupon Rate Definition, Formula & Examples

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Chapter 11/ Lesson 11

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Learn about coupon rate. Discover the difference between coupon rate vs. interest rate and identify how to calculate coupon rate using the coupon rate formula.

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