Posted by anonymous on Monday, December 10, 2007 at 1:03am.
Suppose that you buy a bond for $100 that pays 4 percent interest per year. How much money will you have earned when the bond reaches maturity in five years?

economics  economyst, Monday, December 10, 2007 at 9:16am
Assuming that the bond is a simpleinterest bond..... In year 1, the bond pays 100*.04=$4. In year 2 the bond again pays $4. In each of the years 3,4, and 5 the bond pays $4. So, over 5 years, the bond pays.....
(Note that some bonds pay compounding interest (the "interest payments" are rolled into the bond). This results in greater earnings on the bond.

economics  Anonymous, Tuesday, December 8, 2015 at 12:11pm
$20
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