Question

on april 1 a company sells a 5-year, $60,000 bond with a 7% stated interest rate. the market interest on that day was also 7%. if interest is paid quarterly, the company makes interest payments of .
Group of answer choices
$1,050
$3,150
$4,200
$5,250

Answer 1

If interest is paid quarterly, the company makes interest payments of $1,050.

Interest rate is that the quantity charged over and on top of the principal quantity by the investor from the receiver. In terms of the receiver, an individual who deposits cash to any bank or financial organization additionally earns further financial gain considering the value of cash, termed as interest received by the investor.

For a loan, the market rate is that the average rate of interest which will be charged to the receiver from a spread of suppliers. To the capitalist, the market rate is that the average rate of interest gained from all or a definite set of investment vehicles that ar on the market on the open market.

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