How many payment periods are in a 6-year, 8% bond with an effective interest rate of 6%, and paid semiannually?
A) 3
B) 12
C) 48
D) 6

Name: How many payment periods are in a 6-year, 8% bond with an effective interest rate of 6%, and paid semiannually? A) 3 B) 12 C) 48 D) 6
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Question

Quizplus · Accepted Answer

The bond is paid semiannually, meaning there are 2 payment periods per year. Over 6 years, this results in 6 * 2 = 12 payment periods.

How Many Payment Periods Are in a 6-Year, 8% Bond