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IBM issued 30-year bonds with an annual simple interest rate of 6.22%. Find the semiannual interest payment on a$5,000 bond.

User Ethangui
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1 Answer

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17 votes

9514 1404 393

Answer:

$155.50

Explanation:

The interest is given by the formula ...

I = Prt

where P is the principal earning interest at annual rate r for t years. The interest period here is 1/2 year.

I = $5000×0.0622×1/2 = $155.50

The semiannual interest payment is $155.50 on this bond.

User Giankotarola
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