A bond pays 6 percent on a 1,000 face value, giving 60 a year. The 6 percent figure is the:

1. The rate is applied to the face value to size the payment. 2. Six percent of 1,000 is exactly the 60 paid each year. 3. That rate is the coupon rate. _Source: OpenStax Principles of Finance 2e, Chapter 10, Bonds and Bond Valuation._