SOLUTION: Can someone 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%? (To the nearest dollar, do not i

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Question 430339: Can someone 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%? (To the nearest dollar, do not include the dollar sign $)
I came up with answer 8250, but Im not sure if this is correct... Thank you!!
Answer by jorel1380(3719) About Me  (Show Source):
You can put this solution on YOUR website!
You're close. If the interest rate is 6.875% annually, then the semi-annual interest rate would be half that, or 3.4375%. Multiply this by $24,000 and you get $825.