Ch. 14

1. You buy a municipal bond for $26,000 with an interest rate of 5.25%, and you hold it until its maturity date in 20 years. (Do not round intermediate calculations. Round your final answers to 2 decimal places.)

a. What is the amount of the interest payment you will receive every six months?

b. What will be the amount of the final payment you receive in 20 years?

2. You buy a $21,000 Treasury note that matures in three years at 4.50% interest.

a. What are the interest payments? (Round your final answer to 2 decimal places.)

b. How often will you receive interest?