Question 19 2 points Creative Solutions Inc has issued 10yea

Question 19 (2 points) Creative Solutions Inc. has issued 10-year $1,000 face value, 8% annual coupon bonds, with a ieldto maturity of 9.0%. The annual interest payment for the bond is $80 $40 $90 $45

Solution

Annual Interest Payment = Face Value of Bond * Coupon Rate

= $ 1,000 * 8%

= $ 80

Hence the correct answer is $ 80