Answer:
Semi-annual interest payment
= 4.5% x $80,000
2
= $1,800
Total interest earned over the life of the bond
= 4.5% x $80,000 x 11 years
= $39,600
The correct answer is D
Explanation:
The semi-annual interest payment is calculated as interest rate multiplied by the par value of the bond divided by 2.
The total interest earned over the life of the bond is calculated as interest rate multiplied by the par value multiplied by the maturity of the bond.
