Assume you bought a $1000 par value bond in 2011 for 85 1/4 with an interest rate of 4.7 percent.If you held the bond until maturity in 2021,what would be the total amount that you would earn on this bond?

Question

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The bond was purchased for $852.50 (85.25% of $1000). Over 10 years, it pays 4.7% annual interest on the $1000 par value, totaling $470 in interest. The total earnings are the interest ($470) plus the difference between the par value and purchase price ($1000 - $852.50 = $147.50), totaling $617.50.

Assume You Bought a $1000 Par Value Bond in 2011 $$47000 E)The Amount Cannot Be Calculated Given the Information Provided

Assume You Bought a $1000 Par Value Bond in 2011 $$47000
E)The Amount Cannot Be Calculated Given the Information Provided