5.1% divide by 2 because its semi annual payment is 2.55% per 6-mo. then take the $1000 times the 2.55% to give you a coupon of $25.50 per period per bond. $25.50 times the 5500 bonds you bought gives you the total amount of coupon payment you will receive.
At the date of maturity you will receive the last coupon payment plus the par value. we just calculated the amount of the coupon payment of $140,250.00. The par value associated with all of your bonds is $5,500,000 which was found by (5500 bonds times $1000each) Then you simply add the total par value and the coupon (5,500,000 + 140,250) which gives you $5,640,250 at maturity
You purchase 5,500 bonds with a par value of $1,000 for $983 each. The bonds have a coupon rate of 5.1 percent paid semiannually, and mature in 10 years. How much will you receive on the next coupon date? How much will you receive when the bonds mature???
