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A bond paying 5% on a par value of 1,000 makes an annual coupon payment of:
A50 rupees
B15 rupees
C55 rupees
D25 rupees
Answer & Solution
Correct answer: A. 50 rupees
1. Multiply 1,000 by five per cent.
2. That gives the yearly interest.
3. The payment is 50.
_Source: OpenStax Principles of Finance 2e, Chapter 10, Bonds and Bond Valuation._
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