QuestionJuly 21, 2025

John has a 1000 bond with a 3% coupon. How much interest will John receive for this bond every 6 months? A. 15.00 B. 30.00 C. 25.00 D. 20.00

John has a 1000 bond with a 3% coupon. How much interest will John receive for this bond every 6 months? A. 15.00 B. 30.00 C. 25.00 D. 20.00
John has a 1000 bond with a 3%  coupon. How much interest will John
receive for this bond every 6 months?
A. 15.00
B. 30.00
C. 25.00
D. 20.00

Solution
4.1(321 votes)

Answer

A. \15.00 Explanation 1. Calculate Annual Interest The annual interest is calculated as 1000 \times 0.03 = \30. 2. Calculate Semi-Annual Interest Divide the annual interest by 2 to find the semi-annual interest: \frac{30}{2} = \15.

Explanation

1. Calculate Annual Interest<br /> The annual interest is calculated as $1000 \times 0.03 = \$30$.<br />2. Calculate Semi-Annual Interest<br /> Divide the annual interest by 2 to find the semi-annual interest: $\frac{30}{2} = \$15$.
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