Find Jim’s profit if he buys twenty $1000 OPR bonds in 2020 that mature in 2046 (see Table 3.5) at the closing price, and receives their face value at maturity.  use this chart wrong chart use this one BONDS
BramR 6¾ 29
BurPwr 7½ 43
Dunn 8⅝ 23
Holley 5s 24
Hucks 7s 27
OPR 5⅜ 27
OPR 6½ 46
CUR YLD
6.9
7.8
8.6
Cv
6.9
5.2
6.5
VOL (100's)
34
7
6
51
5
30
13
CLOSE
98.50
96
100
92.75
101
103.38
100
NET CHG
0.88
3.75
0.75
-0.13
-0.50
-0.50

To calculate Jim's profit from buying twenty $1000 OPR bonds in 2020 that mature in 2046, we will break down the problem into steps using the relevant bond information from the chart you provided.

### Key Details:
- **Bond:** OPR 6½ 46
- **Maturity year:** 2046
- **Face value of each bond:** $1000
- **Number of bonds purchased:** 20
- **Price in 2020 (closing price):** 100 (or 100% of face value, meaning Jim buys each bond for $1000)
- **Maturity value:** Each bond will be redeemed at its face value, which is $1000.

Since Jim buys the bonds at face value (closing price of 100), there is no price discount or premium at the time of purchase. He holds the bonds until maturity, where he will receive the face value of the bonds.

### Step-by-Step Calculation:

1. **Initial Purchase Cost:**
   - Jim buys 20 bonds at $1000 each.
   \[
   \text{Initial cost} = 20 \times 1000 = 20,000
   \]

2. **Maturity Value:**
   - Jim receives the face value of each bond upon maturity, which is $1000 per bond.
   \[
   \text{Total maturity value} = 20 \times 1000 = 20,000
   \]

3. **Profit:**
   Since Jim bought the bonds at face value and receives exactly the same face value at maturity, his profit is solely based on any interest or coupon payments made by the bond over the years (which are not provided here, but typically bonds pay annual or semi-annual interest).

### Conclusion:
- **Jim’s Profit from Buying and Holding the Bonds:**
  There is no profit based on the purchase and maturity prices alone, since he bought and redeemed the bonds at face value. The profit would only come from the interest payments, which would need to be calculated based on the coupon rate of 6½% (i.e., 6.5%) on the face value of the bonds over the period he holds them.

Would you like more details on how to calculate the interest Jim receives over time?

### Related Questions:
1. What is the total interest Jim would earn by holding the bonds until 2046?
2. How is bond yield calculated for this type of bond?
3. What would happen to Jim's profit if the closing price had been different from the face value?
4. How do changes in interest rates affect bond prices?
5. What are the risks involved in holding bonds for such a long period?

### Tip:
When purchasing bonds, always check the difference between the purchase price and face value to assess potential capital gains or losses at maturity.

Find Jim’s profit if he buys twenty $1000 OPR bonds in 2020 that mature in 2046 (see Table 3.5) at the closing price, and receives their face value at maturity.

Learn how to calculate Jim's profit from purchasing twenty $1000 OPR bonds in 2020 at a closing price of 100, with the bonds maturing in 2046. The solution includes bond valuation, interest calculations, and basic arithmetic concepts. Ideal for students in Grades 10-12.

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