When calculating bond cash flows for bond valuation, the bond interest payment i

Question

When calculating bond cash flows for bond valuation, the bond interest payment is calculated by _______.

adding the market interest rates to the bond price.

dividing the current price by the yield to maturity.

dividing the maturity price by the current yield.

adding the current yield and the bond coupon.

multiplying the bond par value by the coupon rate

adding the market interest rates to the bond price.

dividing the current price by the yield to maturity.

dividing the maturity price by the current yield.

adding the current yield and the bond coupon.

multiplying the bond par value by the coupon rate

Explanation / Answer

multiplying the bond par value by the coupon rate

Interest rate on bond = Coupon rate * Par value

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