Jackie Martin purchased three $1,000 corporate bonds issued by Starbucks. The bonds pay 6.40 percent annual interest and mature in 2026. What is the total dollar amount of interest Jackie will receive for her three bonds each year? (Do not round intermediate calculations. Round your answer to 2 decimal place.)

Question

Daniel Kemp

Business

17 December, 23:51

Jackie Martin purchased three $1,000 corporate bonds issued by Starbucks. The bonds pay 6.40 percent annual interest and mature in 2026. What is the total dollar amount of interest Jackie will receive for her three bonds each year? (Do not round intermediate calculations. Round your answer to 2 decimal place.)

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Answers (1)

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Tyrese Valenzuela · Answer 1

Dollar amount of interest each year

= 6.40% x $1,000 x 3

= $192

Explanation:

The dollar amount of interest on the three bonds is the coupon, which is interest rate multiplied by face value ($1,000) multiplied by 3 since there were three bonds available.