Question

You purchase a Php1,000 coupon band. The coupon rate on the bond is 4%. What is the coupon payment?

Answer 1

$coupon rate= \frac {coupon payment}{bond face value} \times 100$

$coupon payment= \frac {coupon rate}{100} \times bondfacevalue$

$coupon payment= \frac {4}{100} \times 1000$

$coupon payment= \frac {4000}{100}$

coupon repayment=40

coupon repayment=Php 40