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05-03-2020
Mathematics

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8. Mr. Mercado bought a bond with a face value of $5000 and a coupon rate of 7.5%. The bond will mature in 15 years. How much interest will he receive semiannually?

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isaacoranseola isaacoranseola

09-03-2020

Answer: $187.5

Step-by-step explanation:

The interest = 5000× ( 7.5/100 )÷2

=5000 × 0.075 ÷2

= 5000 ×0.0375

= 187.5 has interest semiannually

Hence, he gets 187.5

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