Determining Interest. Assume that you purchased a corporate bond with a face value of $1,000. The intense rate is 5 percent. What is the dollar amount of annual interest you will receive each year?

Question

anonymous · Answer

if the interest rate is for the whole year, then i think the annual interest  is 
1000x 5/100 for that year

anonymous · Answer

the interest amount you'd receive is $1000 *.05    (that's 5 percent of your face value).

$1000 *.05  = $50

anonymous · Answer

the interest amount you'd receive is $1000 *.05 (that's 5 percent of your face value). $1000 *.05 = $50