Suppose you have a bond, with a par value of $1000, that pays interest twice a year at the rate of 12%. You paid $853.29 when you purchased this bond
a) Calculate the interest rate yield of your bond.
b) You are selling this bond today and will receive $ 936.33 for it. What is the capital gain/loss?© BrainMass Inc. brainmass.com March 4, 2021, 6:12 pm ad1c9bdddf
a) Calculate the interest rate yield of your bond
payment = $1000 * 12% / 2 = $60 each period
Interest rate and capital gain/loss are investigated.