Your company has raised financing by issuing 25-year bonds on January 1, 2009. They mature on December 31, 2033 and have a par value of $1,000 and a coupon rate of 8%. Coupon payments are made semi-annually.

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To calculate the coupon payment, we first need to determine the coupon rate per period. Since the bond makes semi-annual coupon payments, we divide the annual coupon rate by 2.

Annual coupon rate = 8%
Coupon rate per period = Annual coupon rate / Number of periods per year = 8% / 2 = 4%

Next, we calculate the coupon payment. The coupon payment is based on the par value of the bond multiplied by the coupon rate per period.

Par value = $1,000
Coupon rate per period = 4%

Coupon payment = Par value * Coupon rate per period = $1,000 * 4% = $40

Hence, each semi-annual coupon payment on these bonds will be $40.