Respuesta :

Answer:

yield of this new bond is 4.42%

Step-by-step explanation:

given data

bond  = $5000

coupon rate = 4.6%

purchased bond = $5195

to find out

yield of this new bond

solution

We get here first amount paid to the bond holder

amount paid = 4.6% × $5000

amount paid = $230

and

so Tim earned $230 on a bond that cost her $5195  

so yield of this new bond = [tex]\frac{230}{5195} \times 100[/tex]

yield of this new bond = 4.42 %

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