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1 January, 01:51

Lily Adams purchased a $1,000 bond at 70. The bond pays 4%. What was the cost of the bond? What was the annual interest? What is the yield (to the nearest tenth of a percent) ?

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  1. 1 January, 01:52
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    1) $700

    2) $40

    3) 5.7%
  2. 1 January, 02:05
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    1,000*0.70=700

    0.04*1000=40

    40:700=0.0571*100==5.71%
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