Answer:
The cost of 5 bonds $1,000 purchased by Joe McCain is at 89%.
it means cost of 5 bond each having cost $ 1,000 is ,
\(=\frac{89}{100}\times 1,000\\\\=890\)
Cost of 5 bonds which were $ 1,000 is available at $890.
Cost of one bond
\(=\frac{890}{5}=178\)
Cost of one bond =$ 178
Bond pays 6% interest.
Interest on one bond
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Interest = 188.68 - 178=$ 10.68
So, total interest on 5 bonds = 5 × 10.68=$53.40
It can be either monthly or yearly , as it is only written that bond pays 6%.
The Yield is given as,
there is no commission, no closing price
\(=\frac{\text{Interest income}}{\text{Bond investment}}\times 100\\\\=\frac{53.40}{890}\times 100\\\\=\frac{534}{89}\\\\=6\)
So,yield is equal to interest paid by the bond=6%
