Jovan bought a bond with a face value of $15,000 and a coupon rate of 8.5%. the bond will mature in 15 years. how much interest will he receive semiannually?

Respuesta :

Answer: Jovan will receive $637.50 semiannually.

The coupon rate on a bond is the amount of interest that is paid to the bond holder annually.

To find the interest, we multiply: 0.085 x 15000 = 1275

However, we must now divide by 2 because the interest in semiannually.

1275 / 2 = 637.5

Answer:

637.50

Step-by-step explanation:

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