Essay
Suppose that you buy a bond with face value $1,500 that was originally issued 18 months ago. The
maturity date is 4 years from the time it was issued, and the interest rate is 4% simple interest per
year. If you pay $1,290 for the bond and keep it until the maturity date.
a. Find the amount of interest that will be paid on the bond at maturity, and the total amount of
money you'll get from the issuer at that point.
b. Find the profit you'd make on this transaction.
c. What percent of your investment is the profit made?
Correct Answer:
Verified
a. interest = $240; ...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q55: Express 985% as a decimal.<br>A)98,500<br>B)985<br>C)9.85<br>D)98.5
Q56: My friend Charles noticed that one of
Q57: A small restaurant was purchased for $316,000
Q58: As part of his retirement planning, Mr.
Q59: Express 0.2 as a percent.<br>A)0.002%<br>B)20%<br>C)0.2%<br>D)2%
Q61: If you purchase 1,807 shares of stock
Q62: Express <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8446/.jpg" alt="Express as
Q63: is a fee charged for the use
Q64: Express 920% as a mixed number.
Q65: You buy $131 in clothes at a