Final answer:
The total interest payments on a $5000 bond with a 2.8% coupon over 15 years is $2100.
Step-by-step explanation:
If you purchase a $5000 bond with a 2.8% coupon and a 15-year maturity, you will receive annual interest payments based on the coupon rate. To calculate the total interest payments you will receive over the life of the bond, you can use the following formula:
Total Interest = Bond Value x Coupon Rate x Number of Years
Therefore, the total interest payments are calculated as follows:
Total Interest = $5000 x 0.028 x 15
Total Interest = $5000 x 0.42
Total Interest = $2100
Over the 15-year period, you will receive a total of $2100 in interest payments from the bond.