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 (%) 4.40 5.00 6.25 5.15 5.15 4.50 Would Bank of America or Verizon pay the most total interest on a $5,000 bond at maturity? How much interest would that be? Bank of America would pay $ in interest on a $5,000 bond at maturity. Verizon would pay $ in interest on a $5,000 bond at maturity. So, we see would pay the most interest on $5,000 bond at maturity.
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 (%) 4.40 5.00 6.25 5.15 5.15 4.50 Would Bank of America or Verizon pay the most total interest on a $5,000 bond at maturity? How much interest would that be? Bank of America would pay $ in interest on a $5,000 bond at maturity. Verizon would pay $ in interest on a $5,000 bond at maturity. So, we see would pay the most interest on $5,000 bond at maturity.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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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 (%) |
4.40 | 5.00 | 6.25 | 5.15 | 5.15 | 4.50 |
Would Bank of America or Verizon pay the most total interest on a $5,000 bond at maturity? How much interest would that be?
Bank of America would pay $
in interest on a $5,000 bond at maturity. Verizon would pay $
in interest on a $5,000 bond at maturity. So, we see
would pay the most interest on $5,000 bond at maturity.
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