What is the yield on a corporate bond with a $1000 face value purchased at a discount price of $850, if
it pays 7% fixed interest for the duration of the
bond?

the answer is 200

step-by-step explanation:

the way the question is worded, it seems to imply the $264 interest is simple interest, not compound interest.

the simple interest for 2 years is $264; the simple interest for 1 year is $132.

$132 interest on a $600 investment means an interest rate of (132/600)*100 = 22%.

the value of $200 at 22% interest compounded annually for three years is

200%281.22%29%5e3

the amount of interest is that value, minus the original $200.

21

step-by-step explanation:

yes the total will be same because in both of them the expression.is rearranged but their sign remains the same hence it hss just been shuffled

what is the answer to this