What is the cost of the bond?
When you see that a bond was purchased "at 92", this means that the bond was purchased for 92% of the face value. Sometimes the bond purchaser will pay more than the face value (purchased a number greater than 100), generally if the interest rate is higher than the market rate.
The cost of one bond, then, is 92% of 1,000, or $920.
Since there are 6 bonds, the total cost is 920 x 6 = $5520
What is the total annual interest?
The annual interest is the interest rate on the bond times the face value (not the cost of the bond).
The interest rate is 6.5%, so the annual interest on one bond is:
6.5% x 1000 = $65
6 bonds: $65 x 6 = $390
When we think of yield, we want to consider the real return on the bond. This is the annual interest earned divided by what the purchaser paid for it.
The purchaser paid $5520 for the bonds, and is earning $390.
390 ÷ 5520 = 7.06%.
Note that we can also calculate the return on one bond, rather than the total cost and interest of 6 bonds, and get the same result.
65 ÷ 920 = 7.06%
The answer is 50%
if you list out the possibilities, you get
(H being heads, T being tails)
HHH <- 3 heads
HHT <- 2 heads
HTH <- 2 heads
HTT
THH <- 2 heads
THT
TTH
TTT
we counted 4 of them to have at least 2 heads out of the 8 possibilities
4/8 = 1/2 which is 50%
We would apply the formula for determining simple interest which is expressed as
I = PRT/100
I is the interest
P is the principal or initial amount
R = interest rate
T = time in years
From the information given,
P = 1200
r = 18
Since there are 12 months in a year,
T = 9/12 = 0.75
Thus,
I = (1200 x 18 x 0.75)/100
Interest = $162
Realistic occupations which is letter b
Answer:
There was a %5 increase
Step-by-step explanation:
You just have to substract 65-60 and you get 5
