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A bond paying 8% on a par value of 1,000 makes an annual coupon payment of:
A18 rupees
B88 rupees
C48 rupees
D80 rupees
Answer & Solution
Correct answer: D. 80 rupees
1. Multiply par value by the coupon rate.
2. 1,000 times 0.08 gives the figure.
3. The payment is 80.
_Source: OpenStax Principles of Finance 2e, Chapter 10, Bonds and Bond Valuation._
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