Suppose that you buy a bond with face value $1,500 that was originally issued 18 months ago. The
maturity date is 4 years from the time it was issued, and the interest rate is 4% simple interest per
year. If you pay $1,290 for the bond and keep it until the maturity date.
a. Find the amount of interest that will be paid on the bond at maturity, and the total amount of
money you'll get from the issuer at that point.
b. Find the profit you'd make on this transaction.
c. What percent of your investment is the profit made?

Question

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The Answer of Suppose that you buy a bond with face value $1,500 that was originally issued 18 months ago. The
maturity date is 4 years from the time it was issued, and the interest rate is 4% simple interest per
year. If you pay $1,290 for the bond and keep it until the maturity date.
a. Find the amount of interest that will be paid on the bond at maturity, and the total amount of
money you'll get from the issuer at that point.
b. Find the profit you'd make on this transaction.
c. What percent of your investment is the profit made?

Suppose That You Buy a Bond with Face Value $1,500