QuestionAugust 5, 2025

invested in 10 bonds with a total face value of 5,000 issued by Zen Corporation The bonds paid 10% Memiannual interest till the maturity date. Which of the following is the value of poration earned in the first installment on a single bond? a) 75 b) 50 C) 250 d) 500 e) 100

invested in 10 bonds with a total face value of 5,000 issued by Zen Corporation The bonds paid 10% Memiannual interest till the maturity date. Which of the following is the value of poration earned in the first installment on a single bond? a) 75 b) 50 C) 250 d) 500 e) 100
invested in 10 bonds with a total face value of
 5,000
issued by Zen Corporation The bonds paid
10% 
Memiannual interest till the maturity date. Which of the following is the value of poration earned in the first installment
on a single bond?
a) 75
b) 50
C) 250
d) 500
e) 100

Solution
4.4(315 votes)

Answer

\25 Explanation 1. Calculate the annual interest rate for a single bond The total face value of 10 bonds is \5,000, so each bond has a face value of \frac{5000}{10} = \500. The annual interest rate is 10\%. 2. Calculate the semiannual interest for a single bond **Semiannual Interest** = Face Value \times Annual Interest Rate \times \frac{1}{2} = 500 \times 0.10 \times \frac{1}{2}.

Explanation

1. Calculate the annual interest rate for a single bond<br /> The total face value of 10 bonds is \$5,000, so each bond has a face value of $\frac{5000}{10} = \$500$. The annual interest rate is $10\%$.<br />2. Calculate the semiannual interest for a single bond<br /> **Semiannual Interest** = Face Value $\times$ Annual Interest Rate $\times \frac{1}{2}$ = $500 \times 0.10 \times \frac{1}{2}$.
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