Last year a certain bond price with a face value of 5000 yielded 9% of its face value in interest.
Last year a certain bond price with a face value of 5000 yielded 9% of its face value in interest. If that interest was approx 6.5 of the bond's selling price approx what was the bond's selling price?
Answer/Solution
6923
Steps/Work
Interest = 0.09*5000 = 0.065*selling price --> selling price = 0.09*5000/0.065 --> selling price = ~6,923
Answer: E.
Answer: E.