Question

Assume that you purchase a $6,800 bond issued by Kohls that pays 6 percent interest each year, paid every 6 months. What is the amount of each interest payment? (Round your answer to 2 decimal places.)

Multiple Choice
$20.40
$6,800.00
$40.80
$204.00
$408.00

Answer 1

$204.00

Explanation:

Answer 2

interest payment for each period is:

6% =6/100=0,06

Interest Payment = $6,800* 0.06*0.5 = $204

Each interest payment is $204.

Explanation: