Ivan bought a $1000 bond with a 4.5% coupon that matures in 30 years. What
1 answer:
Ivan's annual earnings for this bond is $45.00
<h3>What is a bond?</h3>
A bond is a pledge, made by a borrower to pay a loan taken back to the lender with an interest.
Ivan's annual interest earning would be :
= $1,000 x 4.5 %
= $45 per year
Hence, Ivan's annual earnings for this bond is $45.00
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