Question

Calculate the annual interest that you will receive on the described bond. A ​$1500 Treasury bond with a current yield of 6.0​% that is quoted at 107 points

Answer 1

Answer:

annual interest is $96.3

Explanation:

given data

bond = $1500

rate = 6%

quoted=107 points

to find out

annual interest

solution

we know current yield is here = interest / current value

so here

current value = 107 % × bond

current value = 107/100 × 1500

current value =  $1605

so

current yield = interest / 1605

and current yield = 6% = 6/100

so

interest / 1605 = 6/100

interest = 96.3

so annual interest is $96.3