Lilly adams purchased a $1000 bond at 70. the bond pays 4%

what is the cost of the bond?
what was the annual interest?
what is the yield(to the nearest tenth of a percent)?

Cost=70/100*1000  =700                                                                                        the annual interest is 4% of 1000    40                                                                 the current yield is 4% divided by (70/100) so 28%


i hope it

To solve for the bond price, a formula is used:

bond price = (c * (1- ( 1/ (1+i) ^ n)) / i ) + (m / (1+i)^n )

c = 70
assume n = 10 years
i = 0.04
m = 1000

bond price = $1243.33