John Jimenez Purchased A $5,000 Bond At 90. The Annual Interest Is 5%. What Was The Cost Of The Bond? What Was The Annual Interest? What Is The Yield (To Nearest Tenth Of A Percent)?

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John Jimenez Purchased A $5,000 Bond At 90. The Annual Interest Is 5%. What Was The Cost Of The Bond? What Was The Annual Interest? What Is The Yield (To Nearest Tenth Of A Percent)?. The annual interest can be calculated by multiplying the. The annual interest is 5%.

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Simple interest is interest that is only calculated on the initial sum (the principal) borrowed or deposited. $5,000 * 0.90 = $4,500. To find the cost of the bond, we calculate 90% of the face value of the bond.

What Was The Cost Of The Bond?

The annual interest is 5%. What was the annual interest? $5,000 * 0.90 = $4,500.

First, We Need To Find The Cost Of The Bond.

What is the yield (to nearest tenth of a percent)? Generally, simple interest is set as a fixed percentage for the duration of a loan. John jimenez purchased a $5,000 bond at 90.

Since The Bond Was Purchased At 90% Of Its Face Value, We Can Calculate The Cost As Follows:

The face value is $5,000, so the cost is calculated. Simple interest is interest that is only calculated on the initial sum (the principal) borrowed or deposited. To find the cost of the bond, we calculate 90% of the face value of the bond.