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9966 [12]
1 year ago
9

a bond has a face value of $1,000, an annual coupon rate of 7 percent, yield to maturity of 10 percent, and 20 years to maturity

. the bond's duration is
Business
1 answer:
rewona [7]1 year ago
5 0

The bond that has a face value of $1,000 has a duration of 10 years.

<h3>What is a bond?</h3>

A bond is a type of security in the financial world where the issuer (debtor) owes the holder (creditor) a debt and is required, depending on the terms, to repay the bond's principal (i.e., the amount borrowed) at the bond's maturity date as well as interest (referred to as the coupon) over a predetermined period of time. The interest is typically due at regular intervals, such as every six months, once a year, and less frequently at other times. To finance long-term investments or, in the case of government bonds, to finance immediate expenses, the borrower can obtain external funds through the sale of bonds. Both bonds and stocks are considered to be forms of security, but the main distinction between the two is that (capital) stockholders have an equity stake in a company, whereas bondholders have a creditor stake.

To learn more about bond, visit:

brainly.com/question/28362992

#SPJ4

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A company paid $0.58 in cash dividends per share. Its earnings per share is $4.30 and its market price per share is $28.75. Its
Lina20 [59]

Answer:

a) 2.02%

Explanation:

Dividend yield = Cash dividend per share / Market price per share

Dividend yield = $0.58 / $28.75

Dividend yield = 0.02017

Dividend yield = 2.02%

5 0
3 years ago
Harvey Industries, a Wisconsin company, specializes in the assembly of high-pressure washer systems and in the sale of repair pa
noname [10]

Answer:

<em>1. Airplanes. </em>

<em>2. Ice-cream plants. </em>

<em>3. Building maintenance. </em>

<em>4. Engines. </em>

<em>5. Automobiles. </em>

<em>6. Barns.</em>

<em>7. Lift trucks. </em>

<em>8. Swimming pools.</em>

<em>9. Machinery. </em>

Explanation:

In this scenario, Harvey Industries, a Wisconsin company, specializes in the assembly of high-pressure washer systems and in the sale of repair parts for these systems. The products range from small portable high-pressure washers to large industrial installations for snow removal from vehicles stored outdoors during the winter months.

Basically, the high-pressure water cleaning is a process that involves using water running at a very high pressure and sometimes high temperature to remove mold, dirt, dusts, loose paint, snow removal, grime etc from physical objects such as vehicles, equipments, buildings, billboards through the use of a plunger pump.

The typical uses for high-pressure water cleaning include: Airplanes, Ice-cream plants, Building maintenance, Engines, Automobiles, Barns, Lift trucks, Swimming pools, Machinery etc.

The proper application of high-pressure water cleaning helps to reduce environmental degradation, ensure equipments or environment are clean and neat. Also, high and tight places that cannot be easily reached by humans can still be cleaned with the help of a high-pressure water cleaner.

3 0
3 years ago
On a backpacking trip through Europe, Troy spent 20 Swiss francs to stay one night in a youth hostel. If the foreign exchange ra
GREYUIT [131]
He spent 9.09 american dollars.

3 0
3 years ago
Assume that on November 1, 2019, a 3-month rent payment for $8,000 per month (for a total of $24,000) was made with respect to a
ziro4ka [17]

Answer:

a)

Rent Expense   Dr.$16,000

Bank                  Dr.$48,000

Prepaid Rent     Cr.$64,000

Explanation:

The company entered into lease on 1st November 2019 with rent of $8,000 per month. the company on 1st November 2019 recorded prepaid rent as follows; which is wrong

Prepaid Rent Dr. $72,000

Bank              Cr. $72,000

This is wrong entry as prepaid rent was overstated by ($72,000-$24,000 ) $48,000 and same like bank was understated by $48,000

The correct entry should have been like this as on 1st November 2019;

Prepaid Rent Dr. $24,000

Bank               Cr. $ 24,000

By 31st December 2019, two months rent have already accrued so prepaid rent should be credited by (8000*2+48,000 for additional amount recorded)

<em>So the rectifying entry is; as on 31st December 2019</em>

<em>Rent Expense   Dr.$16,000</em>

<em>Bank                  Dr.$48,000</em>

<em>Prepaid Rent     Cr.$64,000</em>

7 0
3 years ago
An accounting report that shows the changes in capital during the accounting period is a/an A. balance sheet. B. income statemen
saw5 [17]
D would be the answer
4 0
3 years ago
Read 2 more answers
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