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3 A 5-year bond costs 5,000 baht and will pay a total of 800 baht interest over its lifetime. What is its annual interest rat

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Answer #1

The amount of interest paid per year will be 800/5= 160

This interest is 160,/5000 × 100-3.2% of the face value of the bond

So the bonds annual interest rate is 3.2% (correct option is a)

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3 A 5-year bond costs 5,000 baht and will pay a total of 800 baht interest over its lifetime. What is its annual interest rate? (a) 3.2% (d) 32% (b) 1.25% (e) 0.032% (e) 12.5% (f) None of them Cho...
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