Question: 2335 e NAME. . e i o -5 Building Math Skills: Bond Profits Directions: Complete the following problems to find profits for bonds. Review Figure


2335 e NAME. . e i o -5 Building Math Skills: Bond Profits Directions: Complete the following problems to find profits for bonds. Review Figure 11-1.2 in the textbook if needed. 1. Timothy bought a bond with a face value of $1,000. The bond term is 1 year. Helt?oughttthe ; bond at a 5 percent discount from the face value. The bond pays 5 percent annual interest, a}? Timothy will receive two semiannual payments. When the bond is redeemed at rnaturl;lty, what will be the total return (profit) in dollars? What will be the total return on investment? (Round return on investment percentage to one decimal place.) Alejandro bought a bond with a face value of $5,000. The term of the bond is 2 years. He bought the bond at a 4 percent discount from the face value. The bond pays 4 percent annual interest, and Alejandro will receive four semiannual payments. When the bond is redeemed at maturity, what will be the total return in dollars? What will be the total return on investment? (Round return on investment percentage to one decimal place.) Chelsea bought a bond with a face value of $5,000. The bond has a term of 4 years. Chelsea bought the bond at a 3 percent discount from the face value. The bond pays 3 percent annual interest, and Chelsea will receive eight semiannual payments. When the bond is redeemed at maturity, what will be the total return in dollars? What will be the total return on investment? (Round return on investment percentage to one decimal place.)
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