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26 June, 02:06

Kent bought a $2,000, 20-year U. S. Treasury bond that paid six percent annual yield when he was 22. How much would that bond be worth 20 years later when it matured?

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  1. 26 June, 05:41
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    The bond worth $ 4400 at the time of the bond maturity.

    Explanation:

    Principal amount = $ 2000

    Rate of Interest = 6%

    Number of years = 20

    SI = Pnr

    = 2000 * 6 * 20 / 100

    = $ 2400

    The bond worth when it was matured is $ 2000 + $ 2400 = $ 4400
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