Answer :
Answer:
The coupon payment amounts to $45.5 per year
Explanation:
The coupon payment is the payment of the annual interest which is paid to the bondholder through the bond issuer until the debt instrument matures. In short, it is the payments which are periodic payments of he interest to the bondholders.
So, computing the coupon payment as:
Coupon payment = Face value of coupon × Coupon rate
where
Face value is $1,000
Coupon rate os 4.55%
Putting the values above:
Coupon payment = $1,000 × 4.55%
= $45.5