SIE Exam Practice Question 807
Question: 807
Lauren purchased a bond with a face value of $1,000 and a coupon rate of 4.5%. Her effective tax rate is 25%. If the risk-free rate is 4%, and coupon payments are made semiannually, what is the periodic interest payment?
Correct Answer: B
Explanation:
Periodic interest payment = ($1,000 × 0.045) ÷ 2 = $22.50
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