Coupon rate is paid on the principal - assuming the hundo is accurate then it’s $5/yr. If you think Motorola will be around in 14 years then you’d have your investment back. If you think they’ll be around in another 70 years you get $350 + $100 because when it matures they need to repay the bond.
Does that mean 5% of 80 cents or 80 bucks?
Coupon rate is paid on the principal - assuming the hundo is accurate then it’s $5/yr. If you think Motorola will be around in 14 years then you’d have your investment back. If you think they’ll be around in another 70 years you get $350 + $100 because when it matures they need to repay the bond.
It’s neither.