Welcome to Westonci.ca, where your questions are met with accurate answers from a community of experts and enthusiasts. Connect with a community of experts ready to provide precise solutions to your questions quickly and accurately. Join our Q&A platform to connect with experts dedicated to providing accurate answers to your questions in various fields.
Sagot :
The semi-annual interest annuity paid under the bond is $72,000
What is the semi-annual interest annuity?
A bond is a debt instrument used by businesses to raise capital needed for business operations.
Bondholders earn interest on the amount invested and at the maturity of the bond, they are paid back the amount invested. The interest that is paid is a function of the coupon rate of the bond.
The semi-annual interest annuity is the amount that would be paid twice in a month.
The semi-annual interest annuity = (annual interest rate / 2) x face value
The semi-annual interest annuity = (12% / 2) x $1,200,000
The semi-annual interest annuity = 6% x $1,200,000
The semi-annual interest annuity = 0.06 x $1,200,000
The semi-annual interest annuity = $72,000
To learn more about bonds, please check: https://brainly.com/question/13326746
#SPJ1
Thanks for using our service. We're always here to provide accurate and up-to-date answers to all your queries. Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. Stay curious and keep coming back to Westonci.ca for answers to all your burning questions.
