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aalyn [17]
4 years ago
7

Hal Fritz purchased a $5,000 bond at 95. The annual interest is 6%.

Mathematics
1 answer:
Trava [24]4 years ago
4 0
Hi there :-)

Bond Cost = Face Value × Percent
5,000×0.95=4,750

Annual Interest=Face Value×Interest Rate
5,000×0.06=300

Annual Yield=Annual Interest×Bond Cost
(300÷4,750)×100=6.32%

Hope it helps
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