basic mathematics image
 basic mathematics image

Investing in bonds


Investing in bonds is just like investing in stocks.Bonds are sold on the market. They are commonly known as "fixed income" securities.



When corporations or the government are trying to raise money, they sell those at a price lower than the face value and the face value is just the original price.

The price you pay for them is given as a percent of the face value

Any interest you receive is based on the face value. The following explains how we can use skills such as percents to solve such problems.

Find the cost of 4,000 worth of fixed income, which sold for 80 %

Cost of Bond = Face value × Percent of Face

Cost of Bond = 4000 × 0.80

Cost of Bond = 3200

The cost is then 3200

How much interest will they pay you if the annual interest is 4 %?

Interest = Face Value × Annual Rate

Interest = 4000 × 0.04

Interest = 160

The interest you will receive is 160



Still struggling with fractions? Get rid of your fears and frustrations once and for all!

Buy my ebook. It offers a thorough coverage of fractions!


ebook-image





Need a Quick Answer to your Basic Mathematics Problems?
Get an answer in 10 minutes or less from a math expert!


Justanswer features top-notch math experts handpicked by personnel after they have taken and passed a rigourous math test and after their credentials have been verified by a third party

Most math experts have bachelor's or master's degree in math or a related field



I am also an expert for justanswer. If you want me to answer your questions, sign in, browse the list of math experts, select my name or ask for me (Jetser Carasco) before sending your question(s)

Ask a Math Tutor Online

Get a one-on-one online session with a Math Tutor.

JustAnswer

Justanswer is 100% RISK FREE.You Pay Only for the Answers You Like. Fees are Typically $9-$15





Custom Search





Page copy protected against web site content infringement by Copyscape



















 
Copyright © 2008. Basic-mathematics.com. All right reserved