An individual buys a bond for $1,000 and sells it one year later for $1,070.What is the annual interest rate return that this individual has received on this bond?

Name: An individual buys a bond for $1,000 and sells it one year later for $1,070.What is the annual interest rate return that this individual has received on this bond?
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Question

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The individual received a return of $70 on an investment of $1,000 over one year, which is a 7.0 percent return ($70/$1,000 = 0.07 or 7%).

An Individual Buys a Bond for $1,000 and Sells It