Ask Question
11 October, 13:34

You buy a government bond for $128 and sell it for $155 one year later. What was your rate of return (interest rate) measured in percentage terms? Round to two decimal places. Do not enter a % sign.

+3
Answers (1)
  1. 11 October, 13:41
    0
    21.09

    Explanation:

    The rate of return or the rate of interest is computed as:

    Rate of return = Selling price of bond - Purchase price of bond / Purchase price of bond * 100

    where

    Selling price of bond is $155

    Purchase price of bond is $128

    So, putting the values above as:

    Rate of return = $155 - $128 / $128 * 100

    Rate of return = $27 / $128 * 100

    Rate of return = 0.2109 * 100

    Rate of return = 21.09
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “You buy a government bond for $128 and sell it for $155 one year later. What was your rate of return (interest rate) measured in percentage ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers