Ask Question
19 March, 21:26

Muriel buys a $2,000 savings bond with a 4% coupon and 20 years to maturity. How much interest will she earn over the life of the bond?

+5
Answers (1)
  1. 20 March, 00:11
    0
    To solve: use the simple interest calculation.

    interest earned over the life of the bond = (bond price) (coupon rate) (years)

    = (2,000) (0.04) (20)

    = $1,600

    So after 20 years on a 4% coupon bond starting at $2,000 Muriel will earn $1,600 in interest.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Muriel buys a $2,000 savings bond with a 4% coupon and 20 years to maturity. How much interest will she earn over the life of the bond? ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers