Eric bought a $500 bond with a 6.3% coupon that matures in 20 years. what are eric's total earnings for this bond when it reaches its maturity date?

Eric bought a $500 bond with a 6.3% coupon that matures in 20 years.

let's find our eric's total earnings for this bond when it reaches its maturity date.

Formula:

=> 500 dollars * 6.3% * 20 years

=> 500 * 0.063 = 31.5 dollars is the coupon

=> 31.5 dollars * 20 years = 630 dollars.

Thus the amount of her money when it reaches its maturity is 630.