Question

PLEASE!!! I NEED HELP WITH THIS ASAP!!!

part 1) Joaquim Alvez purchases 32 bonds that mature in 2024 at 96.7.
They have a coupon rate of 8.625%.

Find the total cost if commissions are $10 per bond.

part 2) Joaquim Alvez purchases 32 bonds that mature in 2024 at 96.7.
They have a coupon rate of 8.625%.

Find the annual interest.

part 3) Joaquim Alvez purchases 32 bonds that mature in 2024 at 96.7.
They have a coupon rate of 8.625%.

Find the effective interest rate rounded to the nearest tenth.

Answer 1

Part 1
Total paid
=cost of the bond+commission
Total paid
32×96.7+32×10=3,414.4

Part 2
Annual interest
32×96.7
=3,094.4
3,094.4×0.08625
=266.892...Annual interest

Part 3
The effective interest rate
((1+0.08625÷12)^(12)−1)×100
=8.974%