What is the yield on a corporate bond with a $1000 face value purchased at a discount price of $925, if it pays 6% fixed interest for the duration of the bond?

Question

02-05-2022
Mathematics

Answered

IDNLearn.com provides a user-friendly platform for finding and sharing knowledge. Find the information you need quickly and easily with our comprehensive and accurate Q&A platform.

What is the yield on a corporate bond with a $1000 face value purchased at a discount price of $925, if it pays 6% fixed interest for the duration of the bond?

Sagot :

We appreciate your contributions to this forum. Don't forget to check back for the latest answers. Keep asking, answering, and sharing useful information. Trust IDNLearn.com for all your queries. We appreciate your visit and hope to assist you again soon.

In Real-life Applications, Unless There Are Obvious Reasons For Selecting Either A Larger Or Smaller Level Of Significance, Select A Level Of Significance Equal

What Is The Maximum Bond For A Property When The Weekly Rent Is $1200a. 4 Weeks Rent B. 6weeks Rent C. It Is At The Discretion Of The Landlord D. 1 Months Value

Elabora Otra Lista De Los Personajes Escribe Al Frente A Cada Uno Una Pequeña Descripción De Su Carácter O Su Relación Con Los Otros Personajes El Nido De Avisp

STORY1. Study The Following Pictures And Write A Story In About 120-150 Words. You Need To Begin Your Storywith The Following Sentence: "Something Strange And U

Simplify The Fraction: [tex]$\frac{18}{42}$[/tex]

The Difference Between A Product’s Selling Price And Its Costs Is Called _________.a. Markupb. Profit-maximizing Pricec. Price Elasticity Of Demandd. Latitude

According To Goffman, The Main Goal Of Impression Management Is To: A. Save Face.B. Create An Alter Ego.C. Control Our Self.D. Fool Others

Solve This System Of Equations:[tex]\[ \begin{cases} -4x + 2y = 30 \\ -x - 2y = -5 \end{cases} \][/tex]

What Is The Authors’ Claim In This Passage? What Is The Authors’ Primary Purpose In The Passage? in –Sugar Changed The World,

What Types Of Products Did GATT Focus On During The Kennedy Round

Okpalawalter8idn Okpalawalter8idn · Answer 1 · 2022-05-13T07:05:28-04:00

For a $1000 face value purchased at a discount price of $925, if it pays 6% fixed interest for the duration of the bond is the yield on a corporate bond mathematically given as

Yield = 6.5%

What is the yield on a corporate bond?

Generally, the equation for the interest paid is mathematically given as

Interest paid = value of bond x Interest rate

Interest paid = 1000 * 6%

Interest paid = 60

Therefore

Yield = Interest paid / Price paid

Yield = (60 / 925)x 100

Yield = 6.5%

In conclusion, the yield on a corporate bond is
Yield = 6.5%

Sagot :

What is the yield on a corporate bond?

Other Questions