Answer:
$85.174
Step-by-step explanation:
Data provided in the question;
Treasury bond = $2000
Interest rate = 3.7%
Quoted at 115.1 points or 1.151%
Therefore,
the price of the bond = 1.151 × $2000
or
the price of the bond = $2,302
Thus,
the annual interest = Price of the bond × rate
or
the price of the bond = $2,302 × 0.037 = $85.174
Hence, the annual interest in $85.174
