Bond payment valuation

CFA Level I
#1

am i missing something easy here The annual payment of a 20-year, semi-annual pay bond with a $5,000 par value and a 6.875 percent coupon rate currently trading at 89.28 is closest to: A) $343.75. B) $153.45. C) $171.88. D) $306.90.

#2

5000*0.06875 = $343.75

#3

too tired…

#4

wzr Wrote: ------------------------------------------------------- > too tired… So take a break?

#5

i find i don’t absorb much when i’m really tired but then i feel guilty if i don’t study

#6

wzr Wrote: ------------------------------------------------------- > am i missing something easy here > > The annual payment of a 20-year, semi-annual pay > bond with a $5,000 par value and a 6.875 percent > coupon rate currently trading at 89.28 is closest > to: > > A) $343.75. > > B) $153.45. > > C) $171.88. > > D) $306.90. C ??? you do (5000 * .0687)/2 please POST REAL ANSWER

#7

supersharpshooter Wrote: ------------------------------------------------------- > 5000*0.06875 = $343.75 IT IS SEMIANNUAL, DIVIDE BY 2 SHARPY : )

#8

but the question is asking for the annual payment

#9

I did this question before, sharp is right.

#10

supersharpshooter Wrote: ------------------------------------------------------- > but the question is asking for the annual payment yup, i guess i need another red bull, i must be losing mo mojo - sorry!