Question

Ashley purchased a 10-year $3,000 bond at par value with a 7% coupon. What is the total value of the coupons?

$2,100

$210

$5,100

$3,210

Answer 1

210 cause 7% of 3,000 would not be 3,200 or 5,100 or 2,100

Answer 2

@Lena772

Answer 3

$210

Answer 4

ok thank u !!

Answer 5

u welcome :)

Answer 6

it was wrong :( the answer is 2100

Answer 7

\[P(1+i)^{t}\] P=the principal amount which is $3000
i=the coupon interest rate which is .07
t=the number of years is 10
So, \[3000(1.07)^{10}\] = $5901.45
$5901.45 - $3000 = $2901.45 is how much the coupon is worth