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agasfer [191]
3 years ago
8

Malko Enterprises’ bonds currently sell for $1,020. They have a 6-year maturity, an annual coupon of $75, and a par value of $1,

000. What is their current yield?
a. 6.40%
b. 6.91%
c. 6.62%
d. 7.35%
e. 8.46%
Business
1 answer:
mel-nik [20]3 years ago
3 0

Answer:

Current yield = <u>Annual coupon</u>

                         Current market price

Current yield = <u>$75</u>

                         $1,020

Current yield = 0.0735 = 7.35%

The correct answer is D

Explanation:

Current yield equals annual coupon divided by the current market price of the bond.

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Excel City has $1,000,000 of 8%, 10 year general obligation bonds outstanding. The bonds were issued on October 1, 20x8 to finan
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Amount of debt service expenditures should the government report in its Debt Service Fund for the year ended December 31, 20x9 is $176,000

Explanation:

The Debt Service Fund recognises both interest expenses and main expenditures.

Debt service expenses are not normally accrued at the end of the year, but are recorded as debts.

In 20x9 the Debt Service Fund paid a total of $176,000-$40,000

Interest and $100,000 principal on April 1 (both Expenditures of the fund) and $36,000 interest on October 1.

3 0
3 years ago
In her study of real estate and inequality, graduate student shania looks for the "aspen effect." she is looking for:
harkovskaia [24]
Aspen Effect is the outcome of increased economical inequality causing the middle class people to commute long distance for serving the socially wealthy people. In real state, Aspen denotes the wealthy communities and to meet their needs of service, people from service industry, most of them being middle class people and with low wage, travel back and forth. They commute long distance because the service provider simply cannot afford to live by renting or buying housing in the wealthy Aspen communities. Such long hours requirement of commute cause traffic congestion and other challenges. This effect was termed as Aspen Effect by the Cornell University Economics professor Robert H. Frank.
7 0
3 years ago
Stephanie, Inc. sells its product for $40. The variable costs are $18 per unit. Fixed costs are $16,000. The company is consider
Yuliya22 [10]

Answer:

It will increase

Explanation:

Before the purchase of the automated machine, break even point is computed as follows:

Sale price: $40

Less variable cost: $18

Therefore, contribution per unit = $40 - $18 = $22.

With fixed cost at $16,000, breakeven point in units = \frac{Fixed Cost}{Contribution}

= 16,000/22

Break even cost = 727.27 units.

With the purchase of the automated machine, break even point is computed as follows:

Sale price: $40

Less variable cost: ($18 - $2) = $16

Therefore, contribution per unit = $40 - $16 = $24.

Fixed cost = $16,000 + $5,000 = $21,000.

Breakeven point in units = 21,000/24

Break even cost = 875 units.

Therefore, breakeven point will increase as a result of the purchase of the automated machine.

4 0
3 years ago
What is business activity?​
jenyasd209 [6]

Answer:

Business activities include any activity a business engages in for the primary purpose of making a profit. This is a general term that encompasses all the economic activities carried out by a company during the course of business.

4 0
2 years ago
atch China's GDP Growth Rate to the year. This data is easily found by creating a raw data longitudinal or advanced bar chart an
Kamila [148]

Answer:

I will lay out China's GDP growth rate in the last years:

YEAR GDP GROWTH RATE

2018 - 6.6%

2017 - 6.7%

2016 - 6.7%

2015 - 6.9%

2014 - 7.3%

2013 - 7.7%

2012 - 7.8%

2011 - 9.5%

2010 - 10.6%

2009 - 9.4%

2008 - 9.6%

2007 - 14.2%

2006 - 12.7%

2005 - 11.3%

2004 - 10.1%

2003 - 10.0%

2002 - 9.1%

2001 - 8.3%

2000 - 8.4%

1999 - 7.6%

1998 - 7.8%

1997 - 9.2%

1996 - 9.9%

1995 - 10.9%

1994 - 13.0%

1993 - 13.8%

1992 - 14.2%

China was growing a lot in the first years of the 1990s. The last half of the decade saw less grow because of the Asian financial crisis,

During the mid 2010s, China was again growing ove 10% every year. This boosted the world economy, for example, Latin America, because this region is an important provider of raw materials such as coal, oil and soy.

China was not seriously affected by the 2008-2009 financial crisis, or by the 2011 European debt crisis.

However, in recent years, the country has been growing less, probably because as it develops more, it tends to grow less. Same thing has happened to every developed country in the world. In fact, advanced economies like the United States or Germany rarely grow above the 2% rate per year.

3 0
3 years ago
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