When John buys a 1000 bond that pays 6 percent annual interest at 75. what is johns annual eild?

To calculate John's annual yield on the bond, first determine the annual interest payment, which is 6% of the bond's face value of $1,000, yielding $60 annually. Since John buys the bond for $750 (75% of its face value), the annual yield is calculated by dividing the annual interest payment by the purchase price: $60 / $750 = 0.08, or 8%. Therefore, John's annual yield is 8%.