Blackburn Inc. has issued 30-year $1,000 face value, 10% annual coupon bonds, with a yield to maturity of 9.0%. The annual interest payment for the bond is ________
A) $100
B) $90
C) $50
D) $45
Answer: A
Explanation: A) The annual interest or coupon payment is equal to the coupon rate multiplied by the par value of the bond. Here that is (0.10) × ($1,000) = $100.
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