Question

Hal Fritz purchased a $4,000 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) $3,600
2) $200
3) 5.6%

Answer 2

4,000×0.90=3,600
4,000×0.05=200
200÷3,600=0.056*100=5.6%