Ask Question
7 January, 21:19

Tim has a $5000 bond with a 4.6% coupon. Tim purchased this bond for $5195. What is the yield of this new bond

+3
Answers (1)
  1. 7 January, 22:41
    0
    0.67%

    Step-by-step explanation:

    When Tim's bond matures, he will receive ...

    $5000 + 4.6% * $5000 = $5230

    As a fraction of his investment, this is ...

    $4230/$5195 = 1.006737 = 1 + 0.67%

    The yield for Tim is 0.67%.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Tim has a $5000 bond with a 4.6% coupon. Tim purchased this bond for $5195. What is the yield of this new bond ...” in 📘 Mathematics if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers