00:01
Hi, from the question given that, consider the given principal amount.
00:10
Dollar 12 ,000, that is a bond as dollar 12 ,000 as a face value and it has a nine year maturity period.
00:20
So here, term of the bond is equal to nine year and rate of coupon interest, that is rate, coupon rate are is equal to 2 .75 percentage so this can be written as 0 .0275 and here time period is one year.
00:56
Suppose a bond as a face value 12 ,000 and it has a nine year maturity period and it has a rate of coupon 2 .7 % here we need to find the total interest payment paid to the bond holder.
01:10
For the given term of the period.
01:13
So here formula for simple interest, i is equal to prt.
01:26
So substitute the given values.
01:30
So i is equal to p is 12 ,000 times 0 .0275 times 1.
01:39
So simple interest, i is equal to 330.
01:46
The annual interest paid to the bond holder...