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

1 Answer

Matt Greer · Answer 1 · 2018-11-07T18:10:33+0000

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%

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

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