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8 February, 07:38

8. Mr. Mercado bought a bond with a face value of $5000 and a coupon rate of 7.5%. The bond will mature in 15 years. How much interest will he receive semiannually?

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  1. 8 February, 10:05
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    Answer: $187.5

    Step-by-step explanation:

    The interest = 5000 * (7.5/100) : 2

    =5000 * 0.075 : 2

    = 5000 * 0.0375

    = 187.5 has interest semiannually

    Hence, he gets 187.5
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