For the given corporate bond, whose annual simple interest rate is provided, find the semiannual simple interest payment and the total interest earned over the life of the bond. Assume 365 days in a year. $5900 Company Upper A, 30-year bond, 5.614%
Added by Alfredo S.
Step 1
614% - Semiannual simple interest rate: 5.614% / 2 = 2.807% - Face value of the bond: $5900 - Semiannual simple interest payment = Face value * Semiannual simple interest rate - Semiannual simple interest payment = $5900 * 2.807% = $165.77 Show more…
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