If John buys for a 1000 bond that pays 6 percent annual interest at 75 What is John's annual yield?

John buys a bond for $750 (75% of $1,000) that pays a 6% annual interest, which amounts to $60 per year. To calculate the annual yield, divide the annual interest by the purchase price: $60 / $750 = 0.08 or 8%. Therefore, John's annual yield is 8%.