Question

john has a 1000 bond with a 3% coupon. how much interest will john receive for this bond every 6 months

Answer 1

Answer:

15

Step-by-step explanation:

Simple interest is calculated thus; P×R×T ÷ 100

Where P is the principal, which is the bond in this case (1000)

R is the rate at which the interest will be paid per annum (3%)

T is the time in years at which the interest will be paid (6/12years or 0.5years)

Next step is to input the digits into the formula;

1000×3×0.5 / 100

Solving this, we have $15

Therefore, an interest of $15 will be received by John on 1000 bond every six months

Answer 2

Answer:

if a bond cam with 3 % coupon, it means 3 % interest per year

so , if the question asked to count the one received every 6 months, the calculation would be : 

$1000 x 3 % x 6/12

= $15 every 6 months

hope this helps