Answer:
Face value of bond = $ 6000
Rate of interest =7.25 %
The Bond will mature in 5 years.
If the interest is semiannually , the rate of interest will reduce to half.
So, new rate of interest will be [tex]\frac{7.25}{2}=3.625[/tex]
Formula for simple interest
[tex]=\frac{\text{Principal}\times Rate \times time}{100}[/tex]
Interest after 6 months will be
[tex]=\frac{6000 \times 3.625 \times 1}{100}\\\\=60 \times 3.625\\\\=217.5[/tex]
So, interest that Randall will receive after six months = $ 217.50
