If you were to buy a municipal bond for $10,000 with an interest rate of 4% and hold it to its maturity date in 10 years,how often would you receive an interest payment,and for what amount?

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Quizplus · Accepted Answer

Municipal bonds typically pay interest semi-annually, so every six months. The interest payment would be $10,000 * 4% = $400 annually, divided by 2 for each semi-annual payment, resulting in $200 every six months.

If You Were to Buy a Municipal Bond for $10,000