Melanie Nash owns one $1,000 corporate bond issued by Chevron.The bond pays 6.5 percent.If interest is paid semiannually, what is the amount of the cheque that Ms.Nash will receive at the end of each six-month period?

Question

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The interest payment for a bond is calculated by multiplying the face value of the bond by the interest rate and then dividing by the number of payments per year. For a $1,000 bond with a 6.5% interest rate paid semiannually, the calculation is ($1,000 * 0.065) / 2 = $32.50 per six-month period.

Melanie Nash Owns One $1,000 Corporate Bond Issued by Chevron