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n200080 [17]
3 years ago
11

Of the following, identify the CORRECT statement. a. A bond's current yield must always be either equal to its yield to maturity

or between its yield to maturity and its coupon rate. b. Assume that two bonds have equal maturities and are of equal risk, but one bond sells at par while the other sells at a premium above par. The premium bond must have a lower current yield and a higher capital gains yield than the par bond. c. A discount bond's price declines each year until it matures, when its value equals its par value. d. A discount bond's price increases each year until it matures, when its value equals its par value. e. If a bond sells at par, then its current yield will be less than its yield to maturity.
Business
1 answer:
max2010maxim [7]3 years ago
7 0

Answer:

A) A bond's current yield must always be either equal to its yield to maturity or between its yield to maturity and its coupon rate.

Explanation:

the yield to maturity = current yield +/- capital gains yield

current yield = yield to maturity +/- capital gains yield

the capital gains yield is positive or negative depending if the bond was sold at a premium or at a discount which results in a coupon rate being either higher or lower than the yield to maturity.

so the current yield must always be within a range between yield to maturity and coupon rate

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Suppose a stock had an initial price of $57 per share, paid a dividend of $1.1 per share during the year, and had an ending shar
kolbaska11 [484]

Answer:

12.46%

Explanation:

Data provided

Dividend income = $1.1

Ending share per price = $63

Initial price = $57

The computation of the percentage total return is shown below:-

Total return = (Dividend income + (Ending share per price - Initial price)) ÷ Initial price

= ($1.1 + ($63 - $57)) ÷ 57

= ($1.1 + $6) ÷ 57

= $7.1 ÷ 57

= 0.12456

or 12.46%

6 0
3 years ago
During its first year of operations, Walnut Company completed the following two transactions. The annual accounting period ends
natima [27]

Date               Account title                      $Debit                  $Credit

Dec 31            Wages Expenses               4800

                       Wages Payable                                              4800

                          (to record accrued wages)

Jan 06             Wages Payable                 4800

                        Cash                                                              4800

                        (to record payment of wages in cash)

An accounting period, in bookkeeping, is the length with reference to which management accounts and monetary statements are prepared. In management accounting, the accounting period varies widely and is decided via management. monthly accounting periods are common.

An accounting duration is the time frame for which a business prepares its financial statements and reports its financial performance and position to external stakeholders. this could be after three, six, or twelve months. The accounting period usually coincides with the business's fiscal year.

learn more about the fiscal year here brainly.com/question/15982144

#SPJ4

6 0
2 years ago
If a company rents a warehouse, it must pay rent for the warehouse whether it is full of inventory or completely vacant. Other e
Aleksandr [31]

As the output is increased or decreased, these (B) fixed costs remain unchanged.

<h3>What are fixed costs?</h3>
  • Fixed costs, also known as indirect costs or overhead costs in accounting and economics, are corporate expenses that are independent of the volume of goods or services generated by the business.
  • They are usually recurrent, such as monthly interest or rent.
  • These expenses are frequently capital expenses.
<h3>Explanation -</h3>
  1. Dependent refers to a variable that changes when other factors change.
  2. Fixed cost refers to a cost that doesn't change when the number of goods produced increases or decreases.
  3. Opportunity cost refers to the benefit that you would have received from the option that was not chosen.
  4. Marginal cost refers to the change in the cost when you produce an additional unit.
  5. According to this definition and as the statement refers to a cost that doesn't change.

Therefore, as the output is increased or decreased, these (B) fixed costs remain unchanged.

Know more about fixed costs here:

brainly.com/question/3636923

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Complete question:

If a company rents a warehouse, it must pay rent for the warehouse whether it is full of inventory or completely vacant. Other examples include executives' salaries, interest expenses, depreciation, and insurance expenses. As the output is increased or decreased, these _______ costs remain unchanged.

a. dependent

b. fixed

c. opportunity

d. marginal

5 0
2 years ago
JetBlue’s "Even More Space" initiative allowed passengers to buy seats with more legroom for a slightly higher price. The initia
8090 [49]

Answer: Upselling

Explanation:

Upselling is a customer development strategy whereby the customers are encouraged to buy an upgraded or higher end version of a particular product. Upselling therefore results in the customers spending more than what they initially planned for and this bring about increase in revenue to the company.

Therefore, the customer development strategy exemplified by JetBlue is Upselling.

7 0
3 years ago
To edit a sentence for errors in​ spelling, a writer should
Naddika [18.5K]

Answer:

B

Explanation:

A is valid but i would be more worried about B when editing C and D say to fix something but it never says anything is wrong so the wording makes those answers wrong/very highly unlikely

3 0
3 years ago
Read 2 more answers
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