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29 October, 16:22

Three years ago, you purchased a corporate bond that pays 5.0 percent. The purchase price was $1,000. What is the annual dollar amount of interest that you receive from your bond investment

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  1. 29 October, 16:33
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    Annual interest received is $50

    Explanation:

    Amount of annual interest = FV * r

    FV = Face value = $1000

    r = interest rate = 5.0% = 0.05

    Amount of annual interest = $1000 * 0.05

    = $50.
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