Question

John has a $1000 bond with a 4% coupon. How much interest will John receive for this bond every 6 months?

Answer 1

20.00 -apex                 ................

Answer 2

Answer:

$20

Step-by-step explanation:

Given : John has a $1000 bond with a 4% coupon.

Solution :  How much interest will John receive for this bond every 6 months?

Solution :

Principal(P) = $1000

Rate of interest (R)= 4%= 0.04

Time (T)= 6 months = 0.5 years

Formula of simple interest = Principal*rate*time

                                             = 1000*0.04*0.5

                                             =$20

Thus John will receive $20 for this bond every 6 months