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Elizabeth Cherry has a bond that has 10 years to maturity, a face value of $1,000, an 6.5% interest rate, and a market price of $1,200. What is the dollar amount of annual interest on this bond

Respuesta :

Answer:

Annual Interest = $65

Explanation:

Given:

Face Value = $1,000

Market price = $1,200

Interest Rate = 6.5%

Find:

Annual interest on bond

Computation:

Annual Interest = Face Value x Interest rate

Annual Interest = $1,000 x 6.5%

Annual Interest = $65

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