The following information is available for Ivanhoe Company for 2017. Cash used to purchase treasury stock $ 167,388 Cash dividen
ds paid 75,864 Cash paid for interest 77,952 Net income 1,615,764 Sales revenue 2,790,960 Cash paid for taxes 344,520 Cash received from customers 1,970,028 Cash received from sale of building (at book value) 687,648 Cash paid for operating expenses 267,960 Beginning cash balance 38,280 Cash paid for goods and services 971,268 Cash received from issuing common stock 1,235,400 Cash paid to redeem bonds at maturity 696,000 Cash paid to purchase equipment 393,936Prepare a statement of cash flows using the direct method.
1 answer:
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Answer:
The interest rate for this bond is 8% per annum.
Explanation:
Given that,
a bond that costs $1,000 and pays an $80 interest each year.
To find the rate of interest, we use the following formula is
I=Prt
Here P = principal= $1,000
I=interest= $80
t=time= 1 year
∴80 = 1000×r×1
⇒r = 0.080
⇒r= 8%
The yield for this bond is 8% per annum.