Question

# #6. Five years ago, you purchased five corporate bonds that each pay 5.80 percent annual interest....

#6. Five years ago, you purchased five corporate bonds that each pay 5.80 percent annual interest. Each bond has a face value of \$1,000. how much interest do you earn on the five bonds each year?

Interest earned on bond each year = Face Value of Bond*Rate of Interest

Interest earned on 5 bonds each year = 1,000*5.80%*5

= \$290

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