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Bond interest payments before and after taxes Charter Corp. has issued 2 comma 626 debentures with a total principal value of ​$2 comma 626 comma 000. The bonds have a coupon interest rate of 5​%. a. What dollar amount of interest per bond can an investor expect to receive each year from​ Charter?

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thaovtp1407

Answer:

$100

Explanation:

Given:

  • The bonds have a coupon interest rate of 5​%
  • Issued 2 comma 626 debentures
  • Total principal value of ​$2

So dollar amount of interest per bond can an investor expect to receive each year from​ Charter is:

Bond face value × Coupon rate

= $2000* 5%

= $100

segehood

Answer:

$50

Explanation:

Given that

Debentures = 2626

Principal value = 2,626,000

Coupon interest = 5%

Recall that

Dollar amount of interest per bond = bond face value × coupon rate

Since face value = 1000

Therefore

= 1000 × 5%

= 1000 × 0.05

= $50

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