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26 July, 14:36

To determine the six-month interest payment amount on a bond, you would take one-half of the market rate times the face value of the bond.

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  1. 26 July, 14:55
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    False

    Explanation:

    To determine the six month interest payment on a bond, you must multiply the face value of the bond times half the annual contract rate of the bond. The contract rate of the bond is the interest rate used to calculate the bond's coupon.

    The market rate of the bond may or may not be equal to the contract rate. If the bond was sold at a premium, the market rate is lower than the contract rate. If the bond is sold at a discount, the market rate will be higher than the contract rate.
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