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21 June, 22:07

Fred Salmon purchased seven $1,000 bonds at 83. The bonds pay 6.5%.

What was the cost of the bonds?

A. $7,000

B. $5,810

C. $830

What was the total annual interest?

A. $65

B. $455

C. $377.65

What is the yield?

A. 7.8%

B. 7.1%

C. 6.5%

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Answers (1)
  1. 21 June, 22:22
    0
    Given:

    bond: 7 pcs of $1,000 @ 83

    bond pays 6.5%

    What was the cost of the bonds?

    7 * 1,000 = 7,000

    7,000 * 0.83 = 5,810 Choice B.

    What was the total annual interest?

    7,000 * 6.5% = 455 Choice B.

    What is the yield?

    6.5%
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