Per value 1000

Discount 8.5%

Years 10

Redemption value 10%

It seems like you are referring to a financial problem involving a bond or investment. Here’s how we can interpret the given information:

- **Per Value** (Principal or Face Value): 1000
- **Discount**: 8.5% (This could mean the bond is bought at a discount of 8.5% below its face value)
- **Years**: 10 (The bond's maturity or time period)
- **Redemption Value**: 10% (The bond might redeem an additional 10% above the face value at maturity)

### Let's calculate:

1. **Discounted Price**: 
   Since the bond is sold at an 8.5% discount from its face value of 1000:
   \[
   \text{Discounted Price} = 1000 - (1000 \times 0.085) = 1000 - 85 = 915
   \]

2. **Redemption Value**: 
   The bond redeems 10% above the face value. So, at the end of 10 years, the bondholder receives:
   \[
   \text{Redemption Value} = 1000 + (1000 \times 0.10) = 1000 + 100 = 1100
   \]

3. **Annual Yield Calculation** (using approximate simple annual yield):
   \[
   \text{Yield} = \frac{\text{Redemption Value} - \text{Discounted Price}}{\text{Discounted Price}} \times \frac{1}{\text{Years}} 
   \]
   Substituting values:
   \[
   \text{Yield} = \frac{1100 - 915}{915} \times \frac{1}{10} = \frac{185}{915} \times \frac{1}{10} \approx 0.0202 \text{ or } 2.02\%
   \]

Thus, the approximate annual yield of this investment is **2.02%**.

Would you like further details or any clarification?

Here are 5 related questions to expand your understanding:
1. What is the formula for calculating bond yield to maturity (YTM)?
2. How does discount affect the yield of a bond?
3. What is the difference between the coupon rate and yield?
4. How does a bond's time to maturity affect its price and yield?
5. What role does redemption value play in bond investments?

**Tip**: Understanding the relationship between discount, yield, and redemption value helps in assessing the profitability of bonds or fixed-income investments.

Per value 1000, Discount 8.5%, Years 10, Redemption value 10%

Learn how to calculate the bond valuation for a face value of 1000, with an 8.5% discount, over a 10-year period, and a 10% redemption value. This problem covers key finance concepts such as bond pricing, discount rate, redemption value, and annual yield calculation. Suitable for students in Grades 11-12.

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