Canadian Securities Course (CSC) Practice Exam · Question
An investor purchases a bond with a coupon rate of 4.5% and a face value of $1,000. How much interest will the investor receive annually?
The annual interest payment is calculated by multiplying the coupon rate by the face value of the bond. $1,000 x 0.045 = $45.
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Question: An investor purchases a bond with a coupon rate of 4.5% and a face value of $1,000. How much interest will the investor receive annually?
Answer options: ✅ $45
- $4.50
- $450
- $1,000
Correct answer: $45
Explanation: The annual interest payment is calculated by multiplying the coupon rate by the face value of the bond. $1,000 x 0.045 = $45.
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