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13-05-2020
Business

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Creative Solutions Inc. has issued 10minusyear $1,000 face value, 8% annual coupon bonds, with a yield to maturity of 9.0%. The annual interest payment for the bond is ________.

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sadddamkashmiri801 sadddamkashmiri801

20-05-2020

Answer:

$80

Explanation:

The interest payment that is reconized in the financial statement is always based on the coupon rate.

Interest = Face Value of the Bond * Coupon Rate

Annual Interest = $1000 * 8% = $80

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