rabjohnamanda rabjohnamanda

04-06-2022
Mathematics

contestada

Ivan bought a $1000 bond with a 4.5% coupon that matures in 30 years. What
are Ivan's annual earnings for this bond?
A. $45.00
B. $25.00
C. $4.50
D. $22.50

Respuesta :

ayokenny2001 ayokenny2001

07-06-2022

Ivan's annual earnings for this bond is $45.00

What is a bond?

A bond is a pledge, made by a borrower to pay a loan taken back to the lender with an interest.

Ivan's annual interest earning would be :

= $1,000 x 4.5 %

= $45 per year

Hence, Ivan's annual earnings for this bond is $45.00

Learn more about bonds here : https://brainly.com/question/1392006

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