Question

Sarah has a $2000 bond with a 5% coupon. How much interest will Sarah receive for this bond every 6 months?

Answer 1

Hey :)

The formula is
I=prt
I interest received?
P 2000
R 0.05
T 6/12

I=2,000×0.05×(6÷12)
I=50

The answer is $50

Hope this helps! :)

Answer 2

$50

Explanation:

Sarah has a $2000 bond with a 5% coupon.

She will receive in a year = 5% of $2,000

= 5/100 × 2000

= 0.05 × 2,000

= $100

In 6 months she will receive = $100/ 2

= $50

Sarah receive $50 for this bond every 6 months.