A $1,000 TR Global bond at 80.5 pays 6% interest. Find the annual yield.

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asked Nov 4, 2018 81.4k views

5 votes

A $1,000 TR Global bond at 80.5 pays 6% interest. Find the annual yield.

Mathematics
high-school

Sachin Gorade asked

by Sachin Gorade

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1 Answer

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Annual Yield=Annual Interest× Bond Cost
Annual interest 1000×0.06
Bond cost 1000×0.805
Annual yield=((1,000×0.06)÷ (1,000×0.805))×100
=7.5%

Hope it helps

Matt Greer answered Nov 7, 2018

by Matt Greer

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