00:04
Calculate the interest on after two years on bonds with a par value of $1 ,000 each and a 7 % coupon rate payable annually.
00:14
So, to calculate the interest earned after two years on bonds with a par value of, with a par value of $1 ,000 each and a 7 % coupon rate payable annually.
00:58
And a 7 % coupon rate payable annually.
01:08
So, we can use the following formula interest on equals to 0 .07 to $1 ,000 into 5, which is equals to $3 .50.
01:37
Therefore, you would earn $3 .50 in interest after two years.
01:45
You would earn $3 .50 in interest after two years.
02:03
To determine which bond would have a higher annual rate of return based on time until maturity and total return, we need to calculate the yield to maturity for each bond.
02:15
So, for the bond 1 coupon rate is 5 % price is $900 maturity is 10 years.
02:46
For bond 2 coupon rate is 6 % price is $8 .75 maturity is 8 years...