You buy a municipal bond for $20,000 with an interest rate of 5%, and you hold it

Question:

You buy a municipal bond for $20,000 with an interest rate of 5%, and you hold it until its maturity date in 10 years.

a. What is the amount of the interest payment you will receive every six months?

b. What amount will you receive back in 10 years?

Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...