In March 1868, an entrepreneur issued $1000 bonds (to pay for an access road in the city). The bonds carried a 6% annual interest rate payable semiannually. The entrepreneur paid the interest until March 1893, at which time the city assumed responsibility for the bonds (and the road they financed).

(a) The first of these bonds matured in March 2005. At that time how much interest had the city paid on this bond?

(b) Another of these bonds will not mature until March 2149! At that time, how much interest will the city have paid on this bond?

Answer rating: 100% (QA)

Answer To calculate the total interest paid on each bond we need to consider the semiannual ... View the full answer