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OpenStudy (anonymous):
What is the rate of return on an $8500 bond purchased at $6500 with an 8% coupon?
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OpenStudy (anonymous):
A 7.41% B 6.12% C 10.46%
OpenStudy (dumbcow):
is their a maturity date?
OpenStudy (anonymous):
No :/
OpenStudy (anonymous):
i know they gave me a formula for yield. its yeild = coupond amount/ price
OpenStudy (dumbcow):
ok then its 10.46% Face value = 8500 earns 8500*.08 = 680 per year 680/6500 = 0.1046
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OpenStudy (anonymous):
OHHHH okay! thank you!
OpenStudy (dumbcow):
:)
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