Question

John Jimenez purchased a $5,000 bond at 90. The annual interest is 5%.

What was the cost of the bond?

What was the annual interest?

What is the yield (to nearest tenth of a percent)?

Answer 1

1. 4,500
2. 250
3. 5.6%

Answer 2

1) 5000*90/100=4500
2)5000*0.05=250
3)0.05/(90/100)=5.6%