Question

A customer purchases 10 m dade co. florida 7.50% g.o. bonds at a 9.50 basis. how much interest will she collect each year? $75 $95 $750 $950

Answer 1

In the value of bonds, the symbol "M" means "thousands.
Therefore, 10 M = 10,000$

So, the customer bought a coupon with 10,000$ and the expected annual interest is 7.5% of the coupon's value.

Calculating the value of interest is simple, just multiply the interest rate (7.5%) by the original value of the coupon to know how much interest she will collect each year.

Interest collected each year = (7.5 / 100) x 1000 = 750$