Assume that you purchase a $1,000 bond issued by Harley-Davidson that pays 6% interest each year, paid every 6 months. What is the amount of each interest payment?

Question

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The bond pays 6% interest per year on a $1,000 bond, which equals $60 annually. However, since interest is paid every 6 months, each payment is half of the annual interest, resulting in $30 per payment.

Assume That You Purchase a $1,000 Bond Issued by Harley-Davidson