Fred Salmon purchased six $1,000 bonds at 92. The bonds pay 6.5%.
What was the cost of the bonds? $ a0
What was the total annual interest? $ a1
What is the yield (to the nearest tenth of a percent)? a2 %

Question

Fred Salmon purchased six $1,000 bonds at 92. The bonds pay 6.5%.
What was the cost of the bonds?	$ a0
What was the total annual interest?	$ a1
What is the yield (to the nearest tenth of a percent)?	a2 %

ghostgate · Answer

Here's something to look at:
What was the cost of the bonds?
He bought 6 $1,000 bonds, so 6 times 1,000 = 6,000. Now, he got the bonds at the age of 92. Which means 6,000 x 0.92 to get $5,520.00.
What was the total annual interest?
$6,000 x 0.065 = 390.00.
What is the yield (to the nearest tenth percent)?
0.065 / 0.92 = 0.071 (Estimated) which gives you: 7.1

What was the cost of the bonds? $ 5,520.00
What was the total annual interest? $ 390.00
What is the yield (to the nearest tenth of a percent)? 7.1%