Answer:
Coupon= $27.5
Explanation:
Giving the following information:
Face value= $1,000
Coupon= semiannual payments
Coupon rate= 0.055/2= 0.0275
To calculate the semiannual payment, we need to use the following formula:
Coupon= face value*coupon rate
Coupon= 1,000*0.0275
Coupon= $27.5
