Eric bought a $500 bond with a 6.3% coupon that matures in 20 years.
let's find our eric's total earnings for this bond when it reaches its maturity date.
Formula:
=> 500 dollars 6.3% 20 years
=> 500 0.063 = 31.5 dollars is the coupon
=> 31.5 dollars 20 years = 630 dollars.
Thus the amount of her money when it reaches its maturity is 630.
