Rachael purchased a five year $4,750 bond below par value for $3,940 with a coupon of 2.9%. what was her yield?

Her yield was 0.035 or 3.5%.

Step-by-step explanation:

Rachael purchased a five year bond = $4,750

Market value = $3,940

To calculate the bond yield, divide its coupon payment by the market value of the bond.

Coupon value = 2.9% of 4,750

= 0.029 × 4,750 = $137.75

Yield = Coupon (annual cashflow) / market value of the bond  

137.75 ÷ 3,940 = 0.0346 rounded to  0.035

Her yield was 0.035 or 3.5%

40 x 50 = 2000

step-by-step explanation:

6 and 24

step-by-step explanation:

6 x 4 = 24