Timothy periodically purchases bonds issued by prince waste collection. last year, he bought two bonds in february, two bonds in june, and one bond in august, then sold them all in october. prince waste collection bonds were selling at 94.593 in february, 92.661 in june, 105.480 in august, and 102.882 in october. if each bond that timothy bought had a par value of $1,000, how much profit did he make from buying and selling these bonds?

The total profit at the time of sale of the bond is $344.22.

Further Explanation:

Bonds:

The bond is an instrument that is issued by the financial institution or company in order to raise the funds. It is a corporate debt where the issuer borrows the funds from the holder of the bond. The bonds are issued for a specific period and at the time of the maturity; the holder of the bond receives the maturity value. The bondholder is eligible for the periodic interest or the premium at the time of maturity of the bond.

Calculate the cost of all the purchased bonds:

The total cost of all the bonds is $4799.88.

Calculate the sales value of the bonds:

The total sales value of all the bonds is $5,144.1.

Calculate the profit at the time of sale:

Thus, the total profit at the time of the sale of the bond is $344.22.

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Answer details:

Grade: High school

Subject: Accounting

Chapter: Securities

Keywords: Timothy, periodically, purchases, bonds, issued, prince waste collection, last year, bought, two, bonds, february, two bonds in june, and one bond,  august, then, sold, them, october, prince waste collection bonds were selling at 94.593 in february.

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