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Sagot :
Answer:
The answer is "[tex]\bold{\$1160}[/tex]"
Step-by-step explanation:
Calculating total paid money:
[tex]= \$4000 \times 101\% \\\\= \$4000 \times \frac{101}{100} \\\\=\$40 \times 101\\\\=\$4040[/tex]
[tex]\text{Total received money = Principle on Maturity + Interest for 5 years}[/tex]
[tex]= \$4000 + \$4000\times 6\% \times 5 \\\\= \$4000 + \$4000\times \frac{6}{100} \times 5 \\\\= \$4000 + \$40 \times 6 \times 5 \\\\= \$4000 + \$40 \times 30 \\\\= \$4000 + \$1200 \\\\= \$5200 \\\\[/tex]
Total earnings over the life of the corporate bond
[tex]= \$5200 - \$4040 \\\\=\$1160[/tex]
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