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**Comparing and Contrasting Dmitri bought a $1,000 bond at par value with a coupon rate of 5 percent.**

He determines the yield by dividing the amount of interest he earns by the price.

a. How much interest would he earn in the first year and what would be the yield?

b. How much interest would he earn in the first year and what would be the yield if he had paid $950 for the bond?

What would be the interest and yield if he paid $1,050?

**Answer**

it would be b iam a 100 percent sure

##### Virtual Teaching Assistant: Colleen R.

##### Question Level: Basic

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##### Upload Date: 5/31/2017

This 86 words question was answered by Colleen R. on StudySoup on 5/31/2017. The question contains content related to Business Since its upload, it has received 114 views.