SOLUTION: Could anyone help me with the following? What would be the semiannual interest payment on a $24,000 Proctor and Gamble 10-year bond at 6.875%? (round to the nearest dollar) an

Question 430019: Could anyone help me with the following?
What would be the semiannual interest payment on a $24,000 Proctor and Gamble 10-year bond at 6.875%? (round to the nearest dollar)
and...
What would be total amount of interest earned on a $24,000 Proctor and Gamble 10-year bond at 6.875% over the entire life of the bond?
Thank you in advance!!
Answer by mananth(16946) (Show Source): You can put this solution on YOUR website!
Principal P = 24000
Amount= A
years=n 10
compounded 2 times a year
Rate = 6.88
0.03/term
Amount =P*((n+r)/n)^n

Amount =24000*(1+0.03)^ 10*2
Amount =24000*( 1+0.03)^20
24000 *(1.03)^20
Amount = $47181.48
Subtract the two to get total interest
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