Question

Shelly is looking into bonds she can purchase. She is looking at a $6,000 fixed-rate, 10-year bond at 6% and a $6,000 zero coupon bond with a redemption value of $8,000. Compare the potential earnings for the two bonds

Answer 1

$6,000 zero coupon bond with a redemption value of $8,000.

Answer 2

$6,000 fixed-rate, 10-year bond at 6%

Answer 3

so each year, she earns

6000*0.06 = 360 dollars

Over 10 years, she earns 10*360 = 3600 dollars

Answer 4

the fixed rate is better

Answer 5

thanks