Question

19.5 4990.25 = .0039076. Divide both sides by 4990.25. te is then .39076%. V. - En Corporate Bonds For each of the given corporate bonds, whose interest rates are provided, find the semiannual interest payment and the total interest earned over the life of the bond. (See Example 2, Data from: www.finra.org.) 11. $5000 IBM, 30-year bond; 6.220% 12. $9000 Barrick Gold Corp., 10-year bond; 6.800% 13. $12,500 Morgan Stanley, 10-year bond; 4.100%

Answer 1

100 Ull know, I= ptr., I. Interest P2 Principle value to time v a interest rate : My Semi-annual interest payment, where to year for IBM, $5000 x Î x6:220 $155.5. 100 O Total interest earned over the life of the bond, je t=30years, $5000 x 30x 6.220 100 209330 I a. ier lemi annual interest payment, where t-Ź year, far Barrick brold Care, to $9000 x Î x 6.800 a $ 306 100 Total interest earned over the life of the bond i.. t= 10 years, I $9000x 10 x6.800 1002 $500 a> Semiannual interest payment, where t = { year, bar Maron Stanley, To $12,500 x 1x 4.100 2$ 6120 100 2 $256.25

Total interest earned over the life of the bond i.e. t 10 years, I $1250081 ox4.100 100 z $5125

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