Bateman Enterprises invested in the bonds of Greater Glouster on January 1, 2015. These 10-year, $100,000 bonds pay interest of 3% every June 30 and December 31. The effective rate of interest for similar bonds on January 1 was 4%. What is the semi-annual interest payment received by Bateman for these bonds?

A) $1,500
B) $3,000
C) $2,000
D) $4,000

Answer: A
Explanation: A) $100,000 × .03 × 6/12

Business

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