Answer:
Yield on this bond = 4.5%
Step-by-step explanation:
Given:
Face value of bond = $10,000
Annual interest receives from bond = $450
Find:
Yield on this bond
Computation:
Yield on bond = [Annual interest / Face value]100
Yield on this bond = [Annual interest receives from bond / Face value of bond]100
Yield on this bond = [450 / 10,000]100
Yield on this bond = [0.045]100
Yield on this bond = 4.5%
