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

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asked Mar 13, 2018 217k views

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

Mathematics
high-school

Sheereen S asked

by Sheereen S

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Hi there

Annual yield=annual interest÷bond cost

Annual interest=1,000×0.06=60

Bond cost=1,000×0.805=805

So
Annual yield=60÷805=0.0745×100
=7.45%

Good luck!

Shivang MIttal answered Mar 17, 2018

by Shivang MIttal

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