Abby Sane decided to buy corporate bonds instead of stock. She desired to have the fixed-interest payments. She purchased 4 bonds of Meg Corporation 10.50% at 89.50%.

As the stockbroker for Abby (assume a $3 commission per bond), calculate the following.

a. Total cost of the purchase.

Total cost $

b. Total annual interest to be received.

Total annual interest $

c. Current yield. (Round your answer to the nearest tenth percent.)

Current yield %