On Dec 1,2007,you could buy a 10-year U.S.Treasury note(a kind of bond)for $10,000 that pays 4.21% simple interet every year through Dec 28,2017.How much total interest would it earn by then? Thanks!

3 answers

You will get simple interest on the principal amount ($10,000) at 4.21%, given by:
Simple Interest=10000*0.0421*n

where n is the number of years equal to 10 years (ending on Dec 1, 2017) and 27 days from Dec 1, 2017 to Dec. 28, 2017, which is 27/365 years.
So n=10 27/365 in the above formula.
Please help solve the below question.I made a mistake on my first post.Show work please!

On Dec 28,2007,you could buy a 10-year U.S.Treasury note(a kind of bond)for $10,000 that pays 4.21% simple interet every year through Dec 28,2017.How much total interest would it earn by then? Thanks
The above answer stays, since the only change is the period from 10 years and 27 days to 10 years, so n is exactly 10 in the above formula:
Simple Interest=10000*0.0421*n