Five years ago you purchased seven corporate bonds that each

Five years ago, you purchased seven corporate bonds that each pay 4.30 percent annual interest. Each bond has a face value of $1,000. How much interest do you earn on the seven bonds each year?

Solution

Interest earned = 7 Bonds * 1000 * 4.30 % = 7000 * 4.3% = 301

As the question requires only annual interest, here the period of 5 years holding is not needed.