A tax-exempt bond was recently issued at an annual 8 percent coupon rate and matures 20 years from today. The par value of the bond is $1,000.
What exactly are you asking? I'm sorry. :/
To calculate the annual coupon payment for the tax-exempt bond, you can simply multiply the coupon rate by the par value of the bond.
In this case, the coupon rate is 8 percent and the par value is $1,000.
To calculate the annual coupon payment:
Annual Coupon Payment = Coupon Rate * Par Value
Substituting the values, we get:
Annual Coupon Payment = 8% * $1,000
To calculate the amount:
Annual Coupon Payment = (8/100) * $1,000
Simplifying the expression:
Annual Coupon Payment = $80
Therefore, the annual coupon payment for the tax-exempt bond is $80.