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Paha777 [63]
3 years ago
11

Nancy Groom owns one $1,000 corporate bond issued by General Motors. The bond pays 8.5 percent. If interest is paid semiannually

, what is the amount of the check that Ms. Groom will receive at the end of each six-month period.
Business
1 answer:
svlad2 [7]3 years ago
6 0

Answer:

$42.50

Explanation:

The computation of the amount received at the end of each six month period is shown below:

= Issued amount × rate of interest × number of months ÷ total number of months in a year

= $1,000 × 8.5% × 6 months ÷  12 months

= $42.50

By multiplying the issued amount with the rate of interest and the number of months we can get the amount of the check and the same is shown above

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