You purchase a $10,000, ten-year bond at 5%. 1. How often will you receive an interest payment?

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You purchase a $10,000, ten-year bond at 5%.

1. How often will you receive an interest payment?

2. How much will each interest payment be?

3. How much interest will you earn over the ten-year period?

4. How much will you get back on the bond maturity date?

5. If you were to sell your bond after holding it for only three years and interest rates for other similar bonds were at 3%, would you be able to sell your bond at a premium or would you need to sell it at a discount?

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Personal Finance Building Your Future

ISBN: 9780077861728

2nd Edition

Authors: Robert Walker, Kristy Walker

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