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%
Answer:
Please give me the full question
Step-by-step explanation:
It's less than a half
Answer:
1200 feet of ribbon
Step-by-step explanation:
2 feet per doll
600 dolls
600 dolls x 2 feet per doll
1200 feet of ribbon for 600 dolls
Answer:
X + 45
X + 12
1 - x
X - 13
Step-by-step explanation:
Using the keywords sum of, more than, and subtracted will help you. (You can also flip the expression since it didn't say how.
The wrong statement: The volume or the smaller cone cannot be determined because its height is unknown.
We already know that the larger cone has a height of 8 cm and that the smaller cone is just 1/4 of 8 cm.
8×1/4 = 2 cm.
You can still find its volume by using the formula 1/3πr^2.
