Question

A woman acquires a bond that has maturity date of 10 years and a face value of $5,000. If the bond has a coupon rate of 6%, then how much interest will she earn each year? *

Answer 1

I = $3000

Explanation:

I = PRT/100

P = principle= $5000

R = rate = 6%

T = time ( yrs) = 10 yrs

I = (5000*6*10) / 100

I = $3000