Question: James McCulloch purchased a 3 0 - year U . S . Treasury bond four years ago for $ 1 , 0 0 0 .

James McCulloch purchased a 30-year U.S. Treasury bond four years ago for $1,000. The bond pald 270 percent annual Interest. Four years later he sold the bond for $1,064.
a. What is the annual Interest amount for the bond?
Note: Round your answer to 2 decimal places.
b. What is the total interest Mr. McCulloch earned during the four-year perlod?
Note: Do not round Intermedlate calculations.
c. What Is the total return for Mr. McCulloch's bond Investment?
Note: Do not round Intermedlate calculations.
\table[[a. Annual interest,],[b. Total interest,],[c. Total return,]]
 James McCulloch purchased a 30-year U.S. Treasury bond four years ago

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!