Solve the problem.
-Calculate the annual interest for a $1000 Treasury bond with a current yield of 3.7% that is quoted at 106 points.

Question

Quizplus · Accepted Answer

The annual interest is $1000 * 3.7% = $37. The bond is quoted at 106 points, which means it is selling for 106% of its face value. The face value of the bond is $1000, so the bond is selling for $1060. The annual interest is $37, so the current yield is $37 / $1060 = 3.5%.

Solve the Problem. -Calculate the Annual Interest for a $1000 Treasury Bond with Treasury