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.
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Answer: organizing
Explanation:
When the brewery allocated resources to increase its production and distribution, the management function that it'll have relied on is organizing.
First and foremost, we should note that the management functions usually include:
• planning,
• organizing,
• leading, and
• controlling.
The organizational skills is vital in order for the company to runs smoothly. Organizing has to do with the establishment of internal processes in order to know the workers that fits a particular position.
Also, the management makes sure that everyone are organized and that workers are working hard towards the accomplishment of company's goals.
Answer:
Explanation:
First, find the YTM of the bond using the following inputs on a financial calculator;
N = 15*2 = 30 semiannual payments
PV= -925
Semiannual coupon payment; PMT = (8%/2)*1000 = 40
FV = 1,000
then CPT I/Y = 4.458%
Annual rate = 4.458% *2 = 8.92%
Next, use the YTM above and change the time to maturity to (15-5 )= 10 years or 20 semiannuals. Therefore, the price at year 5 will be as follows;
N = 10*2 = 20
Semiannual coupon payment; PMT = 40
FV = 1,000
Semiannual rate; I/Y = 4.458%
then CPT PV = 940.206
The price at year 5 will be $940.21
Answer:
$145,726
Explanation:
Note: <em>The options to this question belongs to another question entirely and that is attached as picture. So, the correct answer is not among the 4 options</em>
Interest expense = Present value of lease payment * Interest rate
Interest expense = $151,146 * 7%
Interest expense = $10,580.22
Particulars Amount
Present value of lease payment $151,146
Add: Interest expense $10.580
Less: Annual Payments <u>($16,000)</u>
Lease Payable on December 31, 2021 Balance Sheet <u>$145,726</u>
Answer:
because it shows how much actual cash a company has generated.
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