Alex purchased a seven-year $600 bond at par value with a 5% coupon. What is the total value of the coupons?

Answer

300 dollars

because u do 600x.5

$78, $79.20

Step-by-step explanation:

PART A: $60 times 1.3 = $78

you add 30% to 100% to get 130% since it is a mark up, and then you convert to a decimal by going to the left twice then multiplying by original price.

PART B

Since it is a discount you subtract 15 percent from 100, but then add back 5 percent since there is tax applied to get 90%, convert to decimal and multiply by original price to get $88 x .9 = $79.20