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8090 [49]
1 year ago
9

What is the current yield for a $1000 corporate bond that pays 8.0 percent and has a current market value of $870?

Business
1 answer:
alexandr402 [8]1 year ago
4 0

The current yield for a corporate bond = 9.19 %

Calculation :

Amount of annual interest = face value × rate of interest

                                         =  $1000 × 8.0

                                           = 8000%

Then, Current yield = amount of annual interest / current price

                                 = 8000%  ÷ $870

                                = 9.19 %

Do corporate bonds pay interest?

Corporate bonds pay interest semi-annually, which suggests that, if the coupon is five percent, each $1000 bond can pay the bondholder a payment of $25 every six months--a total of $50 per year

What Is the Current Yield?

Current yield is an investment's annual income (interest or dividends) divided by the present price of the security. This measure examines the present price of a bond, instead of looking at its face value.

Learn more about current yield :

brainly.com/question/12909555

#SPJ4

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Suppose the economy is closed with national saving of $3 trillion, consumption of $10 trillion, and government purchases of $4 t
yanalaym [24]

Answer:

The correct answer is: $17 trillion.

Explanation:

The Gross Domestic Product or GDP represents the overall market value of all the goods and services a country produces and it measures the size of the economy. The GDP is determined with the following formula:

GDP = C +  G + I + NX

where:

  • C: private consumption or consumer spending
  • G: government spending
  • I: businesses' capital spending
  • NX: net exports (exports - imports)

In the example:

GDP = $3 trillion + $10 trillion + $4 trillion = $17 trillion

4 0
3 years ago
Drew buys 100 shares of Balsamic Corporation for $23 per share. Over the next year, Balsamic pays four quarterly dividends of 50
tangare [24]

Answer:

500 million

Explanation:

5 0
2 years ago
Gold Company was experiencing financial difficulties, but was not bankrupt or insolvent. The National Bank, which held a mortgag
Fiesta28 [93]
The answer would be
5 0
3 years ago
Choose the term that best matches the description given.
givi [52]

People often visits tourist attraction sites.  That there has been an increase in ecotourism, which is tourism to exotic, often threatened natural environments refers to <u>ecological </u>factors.

<h3>What influences tourism?</h3>

Ecotourism is known to be a new trend in the tourism industry. A factor analysis was done and five environmental factors were known to have a negative impact on tourists experience. They include;

  • Pollution
  • Tourism product offering
  • Park violation,
  • Environmental management
  • Tourism impacts.

Learn more about Tourism from

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6 0
2 years ago
Nguyen, Inc. has received a bid for 15 comma 000 units. The costing estimates show that the average cost per unit for this bid w
8_murik_8 [283]

Answer:

B. $ 12 comma 600 comma 000

Explanation:

15,000 units x $700 cost per unit = 10,500,000 total cost

markup policy for the firm: 20% of total cost

the sales price will be the total cost for the order plus a 20% of that cost as a gross profit margin.

sales price = cost x (1 + 20%)

sales price = total cost x 1.20

sales price = 10,500,000 x 1.2 = 12,600,000

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2 years ago
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