Asked by Jessica Strohmenger on Jul 21, 2024
Verified
Sunni bought a $500 corporate bond.The bond pays 4.8% interest per year.If Sunni holds the bond for 15 years,how much will Sunni receive in interest?
A) $480
B) $360
C) $140
D) $24
Corporate Bond
A loan to a corporation; the corporation agrees to pay the bondholder back with interest, much like a bank pays a customer with money on deposit.
Interest Per Year
The annual amount of interest paid on an investment or loan, expressed as a percentage of the principal.
- Comprehend bond interest calculations over fixed periods.
Verified Answer
PS
putri safiraJul 27, 2024
Final Answer :
B
Explanation :
To find the total interest, we need to multiply the bond amount by the interest rate and the number of years.
Total interest = $500 * 4.8/100 * 15 = $360
Total interest = $500 * 4.8/100 * 15 = $360
Learning Objectives
- Comprehend bond interest calculations over fixed periods.