Lucy bought 3frac12 government stock at pound87 per


Lucy bought 3½% government stock at £87 per £100 nominal value. She invested £34,800 in the stock, and held it for a period during which she received interest of £5,600 in total for the period.

Calculate:

(i) the nominal value of the stock purchased

(ii) the number of years for which she held the stock

(iii) the percentage yield on the amount invested for the period

Solution Preview :

Prepared by a verified Expert
Macroeconomics: Lucy bought 3frac12 government stock at pound87 per
Reference No:- TGS01411832

Now Priced at $10 (50% Discount)

Recommended (90%)

Rated (4.3/5)