Making the assumption of no compounding interest, suppose you purchase a perpetuity bond from Lateralus Inc. for $ 4 , 000 with an annual coupon rate of 3 % . Specify all answers to the nearest dollar, and assume a discount rate equal to that of the current interest rate. What is the yearly return on your $ 4 , 000 investment

The additional sum of money over the principal sum of deposit or loan is called compound interest.

The yearly return on $ 4 ,000 investment will be $120.

This can be estimated as:

The computation of yearly return can be estimated as:

= $4,000 × 3%

= $120

Therefore for computing the annual return we simply fund with coupon rate in percentage.

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$120

Explanation:

Data provided as per the given question below:-

Investment = $4,000

Coupon rate in percentage = 3%

The computation of yearly return is shown below:-

Yearly return = Investment × Coupon rate in percentage

= $4,000 × 3%

= $120

Therefore for computing the yearly return we simply investment with coupon rate in percentage.

i believe it’s b because the rest don’t make sense