Question

Clarissa Finley purchased a $1,000 bond at a quoted price of 80.25. The bond pays interest at a rate of 6.5%. What is the annual yield?

Answer 1

8.1 %

Explanation:

Answer 2

Clarissa Finley purchased a 1,000 bond at a quoted price of $80.25:
1000*80.25$=$80250
$80250:100%=$x:6.5%
100*x=80250*6.5, x=$5216.25
The annual yield is $5216.25.