1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
balandron [24]
4 years ago
10

Stephenson Co.'s 15-year bond with a face value of $1,000 currently sells for $850. Which of the following statements is correct

?
A. The bond's coupon rate exceeds its current yield.
B. The bond's yield to maturity is greater than its coupon rate.
C. If the yield to maturity stays constant until the bond matures, the bond's price will remain at $850.
D. The bonds current yield exceeds its yield to maturity.
Business
1 answer:
Mama L [17]4 years ago
8 0

Answer:

The bond's yield to maturity is greater than its coupon rate.

Explanation:

At a discount, the price of the bond is less than its face value, from bond theory principles, this is likely to happen when YTM is more than the coupon rate of the bond. Due to this the present value of the coupons and their face value are going to be lower than 1000 since YTM is greater.

The coupon rate is given as annual interest divided by face value

While

The yield is interest/ current price.

The answer to the question is therefore

The bond's yield to maturity is greater than its coupon rate.

You might be interested in
After you send in your FAFSA form what will you receive back
dangina [55]
You'll receive the Student  Air Report.... 
8 0
4 years ago
The determination of the size of a sales force is usually done via some estimation of expected ___________
UkoKoshka [18]

Answer:

workload

Explanation: had the same quiz not a long time ago

5 0
3 years ago
Connie opened a link that she received in an email. It led to a webpage that congratulated her on winning $1 million. The webpag
Mariana [72]

Answer:

This kind of malware attack is known as ransomware.

Explanation:

-Ransomware is a type of malicious software that typically involves encrypting the files of a victim's PC, laptop or systems. The hacker(s) This essentially denies the victim any access to their data.They then demands payment in order to allow the victim access to their own data. The payment is always required to be transferred in crypto-currency to the hackers.

-Examples of ransomware includes Reveton, CryptoLocker, CryptoWall and the infamous Wannacry which attacked many victims PC across the globe in 2017. Ransomware attacks can be initiated by a user unknowingly visits an infected website.The malware then self downloads and installs itself onto the user’s PC without their knowledge.

-Ransomware attacks can be prevented by using advanced antivirus.

7 0
3 years ago
Each language possesses a structure which must at some level influence the way its users view the world.
attashe74 [19]
The statement above is popularly referred to as Whorfian hypothesis. The hypothesis states that language directly affects the way people think about the world and the way they perceive it, thus it holds the idea that one's language determines one's conception of the world.
3 0
4 years ago
The following data are accumulated by Zadok Company in evaluating the purchase of $370,000 of equipment, having a four-year usef
Romashka [77]

Answer: Management will not look at this investment in equipment favorably, as the net present value of the project is negative, which will decrease shareholder's wealth.

Explanation:

                                    0                   1            2             3              4

Net Cashflows        -370,000     160000      140000 80000 80000

Discount factor  12%    1               0.893 0.797 0.712 0.636

PV of cashflows       -370000     142857 111607 56942  50841

NPV -7752    

3 0
3 years ago
Other questions:
  • Physical growth and maturation are an example of which type of constraint of newell's model?
    6·1 answer
  • A law making labor more expensive will have what impact on the supply curve?
    5·2 answers
  • Scientific management was: A .pioneered by Henri Fayol. B. an outgrowth of the Hawthorne studies which found that people perform
    14·1 answer
  • Iris was at fault in a car crash in which Phil was injured. As they waited for the EMT's to arrive, a plane, which was part of a
    10·1 answer
  • How are creditor and investor claims reported on a balance sheet?
    11·1 answer
  • True or False: In the event of a skyjacking, you should immediately attempt to subdue the skyjackers
    11·1 answer
  • A company must decide if it will make or buy an item it needs. The company can make the item for $10 per unit, but must invest $
    11·2 answers
  • At what constant, continuous rate must money be deposited into an account if the account is to contain $23000 in 7 years? The ac
    15·1 answer
  • Help pls I don’t get this
    14·1 answer
  • According to the Taylor rule, if the inflation rate is one percentage point below the target of 2 percent but at full employment
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!