Answered

Get the answers you need at Westonci.ca, where our expert community is dedicated to providing you with accurate information. Join our platform to connect with experts ready to provide precise answers to your questions in different areas. Discover detailed answers to your questions from a wide network of experts on our comprehensive Q&A platform.

Find the total return earned by the bond with the characteristics shown in the table.Term to Maturity10 monthsFace Value$14.000Annual Interest Rate6.85%What is the total return earned by this bond?$(Round to the nearest cent as needed.)

Sagot :

Answer:

Explanations:

The total return earned by the bond can be derived by using the amount formula as shown:

[tex]\text{Amount = Face Value + Interest}[/tex]

Given the following parameters

Face value = $14,000

Rate (in %) = 6.85% = 0.0685

Time (in years) = 10 months = 10/12 years

Get the Interest

[tex]\begin{gathered} I=\text{PRT} \\ I=14,000\times0.0685\times\frac{10}{12} \\ I=\frac{9590}{12} \\ I=\$799.17 \end{gathered}[/tex]

Get the required t

We appreciate your visit. Hopefully, the answers you found were beneficial. Don't hesitate to come back for more information. We appreciate your visit. Our platform is always here to offer accurate and reliable answers. Return anytime. We're glad you visited Westonci.ca. Return anytime for updated answers from our knowledgeable team.