An investor buys a bond for $5,000. The bond pays $207 interest every six months. After...

Question

Question

An investor buys a bond for $5,000. The bond pays $207 interest every six months. After 18 months, the investor sells the bond for $4,676.

Describe the types of income and/or loss the investor had.

The current income is $________. (Round to the nearest dollar.)

The investor would experience a capital gain or a capital loss or neither (choose one) in the amount of $________.

( if a loss, enter a loss as a negative number rounded to the nearest dollar.)

The total return on this investment is $______(Round to the nearest dollar.)

business finance

Answer 1

Answer #1

The current income is =207*3=621

The investor would experience a capital loss in the amount of 4676-5000=-$324

The total return on this investment is 621-324=$297

Answer 2

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