Question

Assume that you purchase a $1,000 corporate bond that pays 9.25 percent interest. What is the amount of interest that you receive each year?

A. $9.25
B. $92.50
C. $90.00
D. $92.00

Answer 1

The amount of interest that you receive each year on a $1,000 corporate bond that pays 9.25% interest is $92.50.

Step-by-step explanation:

The amount of interest that you receive each year on a $1,000 corporate bond that pays 9.25% interest is $92.50. To calculate the interest, you multiply the principal amount ($1,000) by the interest rate (9.25%) and divide by 100. So, ($1,000 * 9.25%) / 100 = $92.50.