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Bezzdna [24]
1 year ago
6

The following bond was quoted in The Wall Street Journal:

Business
1 answer:
lisov135 [29]1 year ago
6 0

If Five bonds were purchased yesterday, and 5 bonds were purchased today. How much more that the 5 bonds cost today is: $75.

<h3>Cost of bonds today</h3>

Using this formula

Bond Yield =Total annual interest of bond / Total current cost of bond at closing

First step is to calculate the Closing bonds

Closing bonds=(96.875 x 10)× 5 bonds

Closing bonds= $968.75 × 5 bonds

Closing bonds= $4,843.75

Second step is to calculate the Next day cost of bonds

Next day cost of bonds=[(96.875 + 1.50) x 10]× 5 bonds

Next day cost of bonds = $983.75 × 5 bonds

Next day cost of bonds= $4,918.75

Third step is to calculate the Cost of bonds today

Cost of bonds today=$4,918.75 - $4,843.75

Cost of bonds today = $75

Therefore If Five bonds were purchased yesterday, and 5 bonds were purchased today. How much more that the 5 bonds cost today is: $75.

Learn more about cost of bonds today here:brainly.com/question/25596583

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