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suter [353]
3 years ago
5

Suppose that you read in The Wall Street Journal that a bond has a coupon rate of 9 percent, a price of 71 3/8, and pays interes

t annually. Rounded to the nearest whole percent, what would be the bond's "current" yield
Business
1 answer:
olga nikolaevna [1]3 years ago
8 0

Answer:

This question is missing the options given below:

A. 11%

B.13%

C. 15%

D. 17%

E. 20%

The correct answer is option B,the bond current yield is 13%

Explanation:

Bonds Current Yield = Year one cash flow / Current  Price x 100 = 9 / 71.375 x 100 = 12.60% or approximately 13%

Note that 71 3/8 is the same as 71.375% as 3/8 gives 0.375 and when added to 71% gives 71.375%

The year cash flow is calculated as :9% of bond par value($100)=$9

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Explanation:

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3 years ago
A ________ is an intermediate step in the transition from a free trade area to a common market.
Natasha2012 [34]

Answer:

A <u>customs union</u> is an intermediate step in the transition from a free trade area to a common market.

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You have just purchased a car and, to fund the purchase, you borrowed $31,000. If your monthly payments are $493.25 for the next
Free_Kalibri [48]

Answer:

4.56%

Explanation:

The annual percentage rate refers to the rate at which the loan amount is equal to the present value of cash flows

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So,

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= 0.38% × 12

= 4.56%

The 72 months is

= 6 years × 12 months

= 72 months

7 0
3 years ago
Explain how a school's published price (also known as<br> sticker price) and net price differs.
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Hope this helped! :)

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3 years ago
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