karymemelendez
karymemelendez karymemelendez
  • 21-06-2017
  • Mathematics
contestada

A $1,000 TR Global bond at 80.5 pays 6% interest. Find the annual yield.

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Aliwohaish12
Aliwohaish12 Aliwohaish12
  • 21-06-2017
Hi there

Annual yield=annual interest÷bond cost

Annual interest=1,000×0.06=60

Bond cost=1,000×0.805=805

So
Annual yield=60÷805=0.0745×100
=7.45%

Good luck!
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