Question

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

2.A $10,000 Fargo Municipal bond at 102.5 pays 5% interest. Find the annual yield.

Answer 1

the interest and the cost of the bond

Interest = $500.00; Cost of bond = $10,250.00

Explanation:

Answer 2

Hi

1) annual interest=1000×0.06=60

2) annual yield
((10,000×0.05)÷(10,000×1.025))×100
=4.9%

Hope it helps