Question

A bond has a $12,000 face value, a 9-year maturity, and a 3.1% coupon. Find the total of the interest payments paid to the bondholder.

Answer 1

Explanation:

I=PRT

I=12,000(3.1%)

I=12,000(0.031)=372

I=372*9=3348

The total interest paid is $3,348.

Answer 2

$15348

Explanation:

i = prt is the simple interest equation

i = 12,000(0.031) = 372

i = 372*9 = 3348

12000+3348 = $15348