Question

helppppppppppppp Gabriel buys a $2,000 fixed-rate bond with a 4% coupon and five years to maturity. How much interest will he earn over the life of the bond?


Select the best answer from the choices provided.
$400
$800
2,000
$2,800

Answer 1

@jim_thompson5910

Answer 2

Use the formula

I = P*r*t

Answer 3

P is the amount of money put in
r is the interest rate
t is the time in years

Answer 4

Thank you

Answer 5

np

Answer 6

@can you figure it out im having trouble

Answer 7

i get 400 then i got 800

Answer 8

how did you get 800?

Answer 9

i got 400 then i multiply by the years

Answer 10

i did it wrong ... so its $400?

Answer 11

@jim_thompson5910

Answer 12

you should get

2000*0.04*5 = 400

Answer 13

@jim_thompson5910 okay. hey sir can you help me on these problems .. i can give a portion of $ for helping me

Answer 14

how many problems do you have?

and this site is free

Answer 15

well i have a few mate & i like giving back to my helpers .. i need to this quiz so i can graduate

Answer 16

Randy bought a zero coupon bond and a TIPS 5 years ago for $2,500 each. Both had 10 years to maturity. The TIPS's coupon was 2% while the zero coupon bond will be redeemed for $3,000. What should the maximum real value of his bonds be if he tries to sell them today?


Select the best answer from the choices provided.
$250
$750
$5,250
$5,750

Answer 17

@jim_thompson5910

Answer 18

Well two things. We can't help with quizzes or tests. Also, I'm not familiar with what TIPS bonds are. I just heard of them just now. So I my knowledge is limited in this area.

Answer 19

@ganeshie8