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The regular interest payment on a bond is found by multiplying the par value by the:
ACoupon rate
BCurrency rate
CCustody rate
DClearing rate
Answer & Solution
Correct answer: A. Coupon rate
1. The par value is the base.
2. The rate turns it into a payment.
3. You multiply by the coupon rate.
_Source: OpenStax Principles of Finance 2e, Chapter 10, Bonds and Bond Valuation._
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