compute the annual interest that would be earned on the following bond.
a $2000 treasury bond with a current yield of
3.7% that is quoted at 115.1 points

$85.174

Step-by-step explanation:

Data provided in the question;

Treasury bond = $2000

Interest rate = 3.7%

Quoted at 115.1 points or 1.151%

Therefore,

the price of the bond = 1.151 × $2000

or

the price of the bond = $2,302

Thus,

the annual interest = Price of the bond × rate

or

the price of the bond = $2,302 × 0.037 = $85.174

Hence, the annual interest in $85.174

what's that

the solution is the point

step-by-step explanation:

we have

> equation a

> equation b

adds equation a and equation b

substitute the value of x in equation b to find the value of y

the solution is the point