Question

walk me through the rest of these

Bonds Bonds are issued by governments and large corporations to raise money. When you invest in bonds, you lend money to the corporation or government, and you are paid interest. When the bond matures, you will receive the face value of the bond. ANNUAL INTEREST - INTEREST RATE X FACE VALUE BOND COST - PERCENT X FACE VALUE ANNUAL YIELD ANNUAL INTEREST BOND COST Th YI Complete the table below. Round each percent to the nearest hundredth. Face Value of Bond Quoted Price Cost of Bond Interest Rate Annual Interest Annual Yield into 1. $10.000 98 8% 2. $12.000 77 71% AN AT unt for 3. $ 5000 85 0.00 $20.000 101% 911 12% 359 5. Paymen $40.000 85 5g. 25x90 6. Ralph Suarez purchases a $9500 bond at 88. It pays 6% annual interest. $794266 Principe a. What is the cost of the band? 30 12%. Th b. What is the annual interest earned? c. What is the annual yield? 7. Eva Rhodes purchases a $14.000 bond at 06. It pays 12% annual interest TH000 X 12.624% $1767,60 a. What is the cost of the bond? b. What is the annual Interest earned? Principe c. What is the annual yield? 8. You use your savings to buy a $1500 bond at 82. It pays al% annual interest. a. What is the cost of the bond? b. What is the annual Interest earned? c. What is the annual yield! 76 Unit 10 Cartelo Di

Answer 1

I have explained the concept. Some numbers were not clearly visible but i have tried to solve it.

Face Value of bond	Quoted price	Cost of bond	Interest Rate	Annual Interest	Annual Yield		Cost of bond= (quoted price/100*Face value)
10000	98	9800	8%	800	8.16%		When we say the face value is 1000 and investor pays quoted price of 90 it means investors pays 0.90*1000=900
12000	77	9240	7.50%	900	9.74%
5000	85.2	4260	8.25%	412.5	9.68%
20000	91.6	18320	10.50%	2100	11.46%
40000	85.25	34100	12%	4800	14.08%
Question 6
Face Value of bond	Quoted price	Cost of bond	Interest Rate	Annual Interest	Annual Yield
9500	88.25	8383.75	6%	570	6.80%		88.25/100*9500=Bond cost
Question 7
Face Value of bond	Quoted price	Cost of bond	Interest Rate	Annual Interest	Annual Yield
14000	96.75	13545	12.63%	1767.5	13.05%		96.75/100*14000=Bond cost
Question 8
Face Value of bond	Quoted price	Cost of bond	Interest Rate	Annual Interest	Annual Yield
1500	83.75	1256.25	8.75%	131.25	10.45%