Answer:
21.09
Explanation:
The rate of return or the rate of interest is computed as:
Rate of return = Selling price of bond - Purchase price of bond / Purchase price of bond × 100
where
Selling price of bond is $155
Purchase price of bond is $128
So, putting the values above as:
Rate of return = $155 - $128 / $128 × 100
Rate of return = $27 / $128 × 100
Rate of return = 0.2109 × 100
Rate of return = 21.09
