A $1,000 bond carries a 7.55% coupon. The bond currently trades at $1,100. What would the annual interest payment be on this bond?

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The annual interest payment on a bond is calculated by multiplying the bond's face value by its coupon rate. In this case, the bond has a face value of $1,000 and a coupon rate of 7.55%.

To find the annual interest payment, you simply perform the following calculation:

Annual interest payment = Face value x Coupon rate Annual interest payment = $1,000 x 0.0755 Annual interest payment = $75.50

This calculation reflects that the bondholder will receive $75.50 each year as interest, regardless of the bond's current market price of $1,100. The coupon payment is fixed based on the bond's issuance terms, hence the correct answer is $75.50.