If a government bond is $1,000 and entitles the owner to receive $40 per year,then the interest rate on the bond is

Name: If a government bond is $1,000 and entitles the owner to receive $40 per year,then the interest rate on the bond is
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Question

Quizplus · Accepted Answer

To calculate the interest rate on the bond, we divide the annual interest by the bond's face value and then multiply by 100 to get a percentage:
($40/$1,000) x 100 = 4%
Therefore, the answer is B) 4 per cent.

If a Government Bond Is $1,000 and Entitles the Owner