Abby Sane decided to buy corporate bonds instead of stock. She desired to have the fixed-interest...

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Abby Sane decided to buy corporate bonds instead of stock. She desired to have the fixed-interest...

Abby Sane decided to buy corporate bonds instead of stock. She desired to have the fixed-interest payments. She purchased 4 bonds of Meg Corporation 10.80% at 89.20%.

As the stockbroker for Abby (assume a $4 commission per bond), calculate the following.

a. Total cost of the purchase.

Total cost $

b. Total annual interest to be received.

Total annual interest $

c. Current yield. (Round your answer to the nearest tenth percent.)

Current yield %

business accounting

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