Question
The following table lists several corporate bonds issued during a particular quarter. Company AT&T Bank of America General Electric Goldman Sachs Verizon Wells Fargo Time
The following table lists several corporate bonds issued during a particular quarter.
| Company | AT&T | Bank of America | General Electric | Goldman Sachs | Verizon | Wells Fargo |
|---|---|---|---|---|---|---|
| Time to Maturity (years) | 10 | 10 | 2 | 3 | 8 | 7 |
| Annual Rate (%) | 2.40 | 3.00 | 5.25 | 6.15 | 5.15 | 4.50 |
Would Bank of America or Verizon pay the most total interest on a $2,000bond at maturity? How much interest would that be? Bank of America would pay$ in interest on a $2,000bond at maturity. Verizon would pay$ in interest on a $2,000bond at maturity. So, we see Verizon would pay the most interest on $2,000bond at maturity.
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Finite Mathematics
Authors: Stefan Waner, Jerry Lee Ford Jr, Waner/Costenoble, Steven Costenoble
5th Edition
1111789304, 9781111789305
