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Last month Fred's great uncle passed away. Fred uncle left him this Corporate bond (pays 3% interest per year). Interest is paid semi-annually. After doing
Last month Fred's great uncle passed away. Fred uncle left him this Corporate bond (pays 3% interest per year). Interest is paid semi-annually. After doing some research, Fred determined that his uncle bought the bond at its face value of $25,000. Today, the bond is valued $28,500. The current interest rate in the economy is 2.25%. The Flint's are considering selling the bond and using the money to pay off some of their line of credit (debt). The Flint's would like you to tell them: i i. the current yield on the bond; advise them whether to keep or sell the bond; and. If there would be any income tax if they sold the bond
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