Answer:
Interest = $48.3
Step-by-step explanation:
Given : A $1,000 TR Global bond at 80.5 pays 6% interest.
We have also given that a bond price of 90 on a $1,000 bond means that the bond sells for 90% of $1,000, or $900.
To find : The interest
Solution : As we have given $1,000 TR Global bond at 80.5 pays
means the actual amount of bond is given by 80.5% of $1000
80.5% of $1000 = [tex]\frac{80.5}{100}\times1000=805[/tex]
The actual price is $805
Now, the interest on actual is 6%
∴ 6% of $805 = [tex]\frac{6}{100}\times805=0.06\times805=48.3[/tex]
Final interest = $48.3
