practiceq6(4B)

# 63 42000 2708363 2 a 30 year 10000 us treasury bond

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Unformatted text preview: 83.63 – 42000 = \$27083.63 2.) A 30-year \$10,000 US Treasury Bond is quoted at 97.5 points with a current yield of 7.5%. Find the annual interest payment. (2 points) annual interest = current yield ¥ current price current price = 10000 ¥ 0.975 = 9750 annual interest = 0.075 ¥ 9750 = \$731.25 3.) Melissa buys 100 shares of XYZ stock for \$50.25 per share. Eight years later she sells them for \$62.45 per share and pays a commission of \$0.50 per share on the sale. a) Find the total return. (1.5 points) Total return = gain in value ÷ purchase price (similar to (A-P) ÷ P) Tot...
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## This note was uploaded on 03/12/2013 for the course MGF 1107 taught by Professor Wooland during the Fall '08 term at FSU.

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