question archive Diane bought a discount bond for $950 and sold it one year later for $980
Diane bought a discount bond for $950 and sold it one year later for $980
Subject:FinancePrice:2.86 Bought3
Diane bought a discount bond for $950 and sold it one year later for $980. What was her rate of return? Round your answer to two decimal places.
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Please find the solution as below:
Original costs of the bond = $950
Sales price after one year = $980
Therefore, rate of return = [(sales price -original cost)/original cost ]
= (980-950)/950
= 3.16%
