A 7 percent bond has a yield to maturity of 6.5 percent. The bond matures in seven years, has a face value of $1,000, and pays semiannual interest payments. What is the amount of each coupon payment?

A. $30.00

B. $35.00

C. $60.00

D. $65.00

Answer: The correct answer is $35.00.

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