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klasskru [66]
4 years ago
13

Gabriel buys a $2,000 fixed-rate bond with a 4% coupon and five years to maturity. How much interest will he earn over the life

of the bond? Select the best answer from the choices provided.
Mathematics
1 answer:
Mariana [72]4 years ago
4 0
The coupon rate of the bond is 4%
coupon=4/100×2000
coupon=$80
Time taken to maturity for the bond is 5 years
number of terms=2  terms
thus total amount of interest will be:
2×5×80
=$800

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