Question
Three years ago you purchased a corporate bond that pays 5.50 percent annual interest. The face value of the bond is $5,000. What is the
Three years ago you purchased a corporate bond that pays 5.50 percent annual interest. The face value of the bond is $5,000. What is the total dollar amount of interest that you received from your bond investment over the three-year period?
Assume that at the beginning of the year, you purchase an investment for $6,700 that pays $90 annual income. Also assume the investments value has decreased to $6,500 by the end of the year. |
(a) | What is the rate of return for this investment? (Input the amount as a positive value. Enter your answer as a percent rounded to 2 decimal places.) |
(b) | Is the rate of return a positive or negative number? | ||
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