What is the semiannual coupon payment for a 12% bond with a $1,000 par?

A) $60
B) $120
C) $600
D) $1,200

Semiannual Coupon

A bond payment made twice a year to bondholders, representing the interest payment on the bond’s face or nominal value.

Par Value

The face value of a bond or stock as stated by the issuing company, which does not necessarily match the market value.

Annual Coupon

The yearly interest payment issued to bondholders, typically expressed as a percentage of the bond’s face value.